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PRINTER'S NO. 796
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
756
Session of
2025
INTRODUCED BY GEBHARD, K. WARD, PITTMAN, BROWN AND LAUGHLIN,
MAY 13, 2025
REFERRED TO COMMUNITY, ECONOMIC AND RECREATIONAL DEVELOPMENT,
MAY 13, 2025
AN ACT
Amending Titles 4 (Amusements), 18 (Crimes and Offenses) and 42
(Judiciary and Judicial Procedure) of the Pennsylvania
Consolidated Statutes, in fantasy contests, further providing
for definitions, for general and specific powers of board and
for prohibitions; in general provisions relating to gaming,
further providing for legislative intent and for definitions;
in Pennsylvania Gaming Control Board, further providing for
Pennsylvania Gaming Control Board established, for general
and specific powers, for license or permit application
hearing process and public input hearings, for regulatory
authority of board, for number of slot machines, for reports
of board and for license or permit prohibition; in licensees,
further providing for Category 4 slot machine license, for
divestiture of disqualifying applicant, for manufacturer
licenses, for gaming service provider, for nongaming service
provider, for occupation permit application, for slot machine
testing and certification standards, for slot machine
accounting controls and audits and for renewals; in table
games, further providing for regulatory authority and for
table game device and associated equipment testing and
certification standards; in interactive gaming, further
providing for internal, administrative and accounting
controls, for interactive games and interactive gaming
devices and associated equipment testing and certification
standards; in sports wagering, further providing for
definitions; in revenues, further providing for slot machine
licensee deposits and for transfers from State Gaming Fund;
in administration and enforcement, repealing provisions
relating to political influence, further providing for
investigations and enforcement, for prohibited acts and
penalties and for liquor licenses at licensed facilities; in
fingerprinting, further providing for submission of
fingerprints and photographs; in miscellaneous provisions
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relating to gaming, providing for live-streaming on casino
floor and further providing for severability; in general
provisions relating to video gaming, further providing for
definitions; in administration, further providing for powers
of board; in application and licensure, further providing for
key employee licenses, for establishment licenses and for
license or permit prohibition; in operation, further
providing for video gaming limitations and for compulsive and
problem gambling; in enforcement, further providing for
prohibited acts and penalties; in revenues, further providing
for fees; in ethics, repealing provisions relating to
political influence; providing for skill gaming; establishing
the Skill Gaming Fund; imposing duties on the Department of
Revenue; in riot, disorderly conduct and related offenses,
further providing for gambling devices, gambling, etc.; in
forfeiture of assets, further providing for asset forfeiture;
making appropriations; making repeals; and making editorial
changes.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. The definitions of "applicant" and "fantasy
contest" in section 302 of Title 4 of the Pennsylvania
Consolidated Statutes are amended to read:
§ 302. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"Applicant." A person who, on [his] the person's own behalf
or on behalf of another, is applying for [permission to engage
in any act or activity which is regulated under the provisions
of] a registration, permit, certification, license,
qualification or other credential issued by the board pursuant
to this chapter. If the applicant is a person other than an
individual, the board shall determine the associated persons
whose qualifications are necessary as a precondition to the
licensing of the applicant.
* * *
"Fantasy contest." As follows:
(1) An online fantasy or simulated game or contest,
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between participants and not a licensed operator, with an
entry fee and a prize or award in which:
(i) The precise value of all prizes or awards
offered to winning participants is established and made
known to participants [in advance of] prior to accepting
any entries into the contest and the value is not
determined by the number of participants or the amount of
any fees paid by those participants.
(i.1) The establishment of all prizes or awards do
not include the creation of a prize pool wherein the
money in the prize pool is likely to be divided between a
number of winning participants in amounts unknown until
the contest is concluded.
(i.2) The maximum number of participants allowed to
enter into the contest is clearly disclosed and subject
to limitations established by the board.
(ii) All winning outcomes [reflect the relative
knowledge and skill of participants and] are determined
only by accumulated statistical results of the
performance of individuals[, including athletes in the
case of sports events] and nothing else.
(ii.1) The winning outcomes are determined by the
number of times a participant correctly picks whether an
individual's performance exceeds or fails to exceed a
predetermined threshold or similar selection secondary to
an individual's accumulated statistical results.
(iii) No winning outcome is based on the score,
point spread or performance of a single actual team or
combination of teams or solely on a single performance of
an individual athlete or player in a single actual event.
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(2) The term does not include social fantasy contests.
* * *
Section 2. Sections 311(b)(7.1), (7.2) and (10), 326(a)(12)
(iii) and 1102(1) of Title 4 are amended to read:
§ 311. General and specific powers of board.
* * *
(b) Specific powers.--The board shall have the following
specific powers:
* * *
(7.1) To require prospective and existing employees of
the board, independent contractors of the board, applicants
and licensees to submit [to fingerprinting by] fingerprints
to the Pennsylvania State Police [or an authorized agent of
the Pennsylvania State Police]. The Pennsylvania State Police
[or authorized agent of the Pennsylvania State Police] shall
conduct a State record check and submit the fingerprints to
the Federal Bureau of Investigation for purposes or verifying
the identity of the individual and obtaining records of
criminal arrests and convictions.
(7.2) To require prospective and existing employees of
the board, independent contractors of the board, applicants
and licensees to submit photographs consistent with the
standards established by the board.
* * *
[(10) To require licensed operators, except for a
licensed operator operating season-long fantasy contests that
generate less than $250,000 in season-long fantasy contest
adjusted revenue, unless the board determines otherwise, to:
(i) contract with a certified public accountant to
conduct an annual independent audit in accordance with
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standards adopted by the American Institute of Certified
Public Accountants to verify compliance with the
provisions of this chapter and board regulations;
(ii) contract with a testing laboratory approved by
the board to annually verify compliance with the
provisions of this chapter and board regulations; and
(iii) annually submit to the board and department a
copy of the audit report required by subparagraph (i) and
submit to the board a copy of the report of the testing
laboratory required by subparagraph (ii).]
* * *
§ 326. Prohibitions.
(a) General rule.--No licensed operator may:
* * *
(12) offer a fantasy contest where:
* * *
[(iii) the winning outcome does not reflect the
relative knowledge and skill of participants;]
* * *
§ 1102. Legislative intent.
The General Assembly recognizes the following public policy
purposes and declares that the following objectives of the
Commonwealth are to be served by this part:
(1) The primary objective of this part to which all
other objectives and purposes are secondary is to protect the
public through the regulation and policing of all activities
involving gaming and practices that continue to be unlawful.
It is the intent of the General Assembly to occupy the field
of gaming in this Commonwealth and to prohibit all forms of
gaming, wagering and gambling in this Commonwealth, including
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all traditional, electronic and mobile formats, that have not
been expressly authorized by statute.
* * *
Section 3. The definitions of "applicant," "background
investigation," "cash equivalent," "conduct of gaming,"
"interactive game," "interactive gaming," "interactive gaming
operator," "interactive gaming website," "nongaming service
provider" and "slot machine" in section 1103 of Title 4 are
amended to read:
§ 1103. Definitions.
The following words and phrases when used in this part shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Applicant." [Any] A person who, on [his] the person's own
behalf or on behalf of another, is applying for [permission to
engage in any act or activity which is regulated under the
provisions of] a registration, permit, certification, license,
qualification or other credential issued by the board pursuant
to this part. In cases in which the applicant is a person other
than an individual, the Pennsylvania Gaming Control Board shall
determine the associated persons whose qualifications are
necessary as a precondition to the licensing of the applicant.
* * *
"Background investigation." A security, criminal, credit and
suitability investigation of a person as provided for in this
part. The investigation shall include the status of taxes owed
[to the United States and] to the Commonwealth and its political
subdivisions.
* * *
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"Cash equivalent." [An asset that is readily convertible to
cash, including, but not limited to, any of the following:
(1) Chips or tokens.
(2) Travelers checks.
(3) Foreign currency and coin.
(4) Certified checks, cashier's checks and money orders.
(5) Personal checks or drafts.
(6) A negotiable instrument applied against credit
extended by a certificate holder, an interactive gaming
certificate holder, an interactive gaming operator or a
financial institution.
(6.1) A prepaid access instrument.
(7) Any other instrument or representation of value that
the Pennsylvania Gaming Control Board deems a cash
equivalent.] A ticket, token, chip, card or other similar
instrument or representation of more than nominal value that
the board deems a cash equivalent in accordance with this
part.
* * *
"Conduct of gaming." The [licensed] placement, operation and
play of slot machines, table games and interactive games and
casino simulcasting under this part[, as authorized and approved
by the Pennsylvania Gaming Control Board]. The term shall
include the licensed placement, operation and play of authorized
interactive games through the use of multi-use computing devices
at a qualified airport under Subchapter B.1 of Chapter 13B
(relating to multi-use computing devices).
* * *
"Interactive game." Any [gambling] game offered through the
use of communications technology that allows a person, utilizing
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money, checks, electronic checks, electronic transfers of money,
credit cards or any other instrumentality to transmit electronic
information to assist in the placement of a bet or wager and
corresponding information related to the display of the game,
game outcomes or other similar information. The term shall not
include:
(1) A lottery game or Internet instant game as defined
in the act of August 26, 1971 (P.L.351, No.91), known as the
State Lottery Law.
(2) iLottery under Chapter 5 (relating to lottery).
(3) A nongambling game that does not otherwise require a
license under the laws of this Commonwealth.
(4) A fantasy contest under Chapter 3 (relating to
fantasy contests).
"Interactive gaming." The placing of wagers [with an
interactive gaming certificate holder or interactive gaming
operator] using a computer network of both Federal and non-
Federal interoperable packet switched data networks through
which [an interactive gaming certificate holder] a person may
offer [authorized] interactive games to [registered] players.
The term shall include the placing of wagers through the use of
a multi-use computing device.
* * *
"Interactive gaming operator." A person [licensed by the
Pennsylvania Gaming Control Board to operate interactive gaming
or an interactive gaming system on behalf of an interactive
gaming certificate holder. The term shall include a person that
has received conditional authorization under section 13B14
(relating to interactive gaming operators) for so long as such
authorization is effective] who operates or conducts interactive
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gaming.
* * *
"Interactive gaming website." The interactive gaming skin or
skins through which an interactive gaming certificate holder or
interactive gaming operator makes [authorized] interactive games
available for play.
* * *
"Nongaming service provider." A person that is not a gaming
service provider or required to be licensed as a manufacturer,
supplier, management company or gaming junket enterprise under
this part and that provides goods or services[:
(1)] to a slot machine licensee or applicant for a slot
machine license for use in the operation of a licensed
facility[; and
(2) that does not require access to the gaming floor or
a gaming-related restricted area].
* * *
"Slot machine."
(1) The term includes:
(i) Any mechanical, electrical or computerized
contrivance, terminal, machine or other device [approved
by the Pennsylvania Gaming Control Board] which, upon
insertion of a coin, bill, ticket, token or similar
object therein or upon payment of any consideration
whatsoever, including the use of any electronic payment
system except a credit card or debit card, is available
to play or operate, the play or operation of which,
whether by reason of skill or application of the element
of chance or both:
(A) May deliver or entitle the person or persons
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playing or operating the contrivance, terminal,
machine or other device to receive cash, billets,
tickets, tokens or electronic credits to be exchanged
for cash or to receive merchandise or anything of
value whatsoever, whether the payoff is made
automatically from the machine or manually.
(B) May utilize spinning reels or video displays
or both.
(C) May or may not dispense coins, tickets or
tokens to winning patrons.
(D) May use an electronic credit system for
receiving wagers and making payouts.
(ii) Associated equipment necessary to conduct the
operation of the contrivance, terminal, machine or other
device.
(iii) A skill slot machine, hybrid slot machine and
the devices or associated equipment necessary to conduct
the operation of a skill slot machine or hybrid slot
machine.
(iv) A slot machine used in a multistate wide-area
progressive slot machine system and devices and
associated equipment as defined by the Pennsylvania
Gaming Control Board through regulations.
(v) A multi-use computing device which is capable of
simulating, either digitally or electronically, a slot
machine.
(2) The term does not include a fantasy contest terminal
within the meaning of Chapter 3.
* * *
Section 4. Section 1201(i)(1) of Title 4 is amended to read:
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§ 1201. Pennsylvania Gaming Control Board established.
* * *
(i) Compensation.--
(1) [The Executive Board as established in the act of
April 9, 1929 (P.L.177, No.175), known as The Administrative
Code of 1929, shall establish the compensation of the
members.] Compensation for members shall be $70,000 annually.
* * *
Section 5. Section 1202(b) of Title 4 is amended by adding a
paragraph to read:
§ 1202. General and specific powers.
* * *
(b) Specific powers.--The board shall have the specific
power and duty:
* * *
(39) To annually review any required compliance reports
and eliminate reports that the board determines to be
unnecessary or duplicative.
Section 6. Sections 1202.1(c)(5), 1205(b)(2), 1207(4), (13),
(19) and (26), 1210(a)(2), 1211(d.1) and (d.3) and 1213(4)(ii)
of Title 4 are amended to read:
§ 1202.1. Code of conduct.
* * *
(c) Restrictions.--In addition to the other prohibitions
contained in this part, a member shall:
* * *
(5) Not hold or campaign for public office, hold an
office in any political party or political committee, [as
defined in section 1513(d) (relating to political
influence),] contribute to or solicit contributions to a
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political campaign, political party, political committee or
candidate, publicly endorse a candidate or actively
participate in a political campaign.
* * *
§ 1205. License or permit application hearing process; public
input hearings.
* * *
(b) Public input hearing requirement.--
* * *
[(2) All public input hearings under paragraph (1) shall
be held in the municipality where the licensed facility will
be, or is, located and shall be organized in cooperation with
the municipality.]
* * *
§ 1207. Regulatory authority of board.
The board shall have the power and its duties shall be to:
* * *
(4) Require that each licensed entity provide to the
board its audited annual financial statements, with such
additional detail as the board from time to time shall
require, which information shall be submitted not later than
[90] 180 days after the end of the licensee's fiscal year.
* * *
[(13) Require slot machine licensees to provide onsite
facilities for use by the board and other appropriate persons
for the purpose of carrying out their respective
responsibilities under this part.]
* * *
(19) Authorize an employee of the board to approve, deny
or condition a request to decrease the number of slot
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machines in operation at a licensed facility. An employee may
not approve a requested decrease in the number of slot
machines under this paragraph if the requested decrease
exceeds 2% of the total number of slot machines in operation
at a licensed facility. [Except as provided under paragraph
(20), at no time shall the number of slot machines in
operation at a Category 1 or Category 2 licensed facility be
less than 1,500 or less than 250 slot machines at a Category
3 licensed facility.]
* * *
(26) Negotiate and enter into interactive gaming
reciprocal agreements on behalf of the Commonwealth to govern
the conduct of interactive gaming between interactive gaming
certificate holders in this Commonwealth and gaming entities
in other states or jurisdictions. Notwithstanding any
provision of this part, wagers may be accepted in accordance
with this part and regulations of the board from persons in
other states or jurisdictions and wagers from persons in this
Commonwealth may be made through an interactive gaming
platform to a state or jurisdiction with which the
Commonwealth has an interactive gaming reciprocal agreement
if the board determines that such wagering is not
inconsistent with Federal law or the law of the state or
jurisdiction in which the person or gaming entity is located,
or such wagering is conducted pursuant to an interactive
gaming reciprocal agreement to which this Commonwealth is a
party that is not inconsistent with Federal law. The board[,
with the approval of the Governor,] is hereby designated as
the agency of the Commonwealth with the power and authority
to enter into interactive gaming reciprocal agreements with
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other states or jurisdictions.
* * *
§ 1210. Number of slot machines.
(a) Initial complement.--Except as provided for Category 3
slot machine licensees under section 1305 (relating to Category
3 slot machine license) or a Category 4 slot machine licensee
under section 1305.1 (relating to Category 4 slot machine
license), the following apply:
* * *
[(2) Each slot machine licensee shall be required to
operate and make available to play a minimum of 1,500 slot
machines at its licensed facility within one year of the
issuance by the board of a slot machine license to the slot
machine licensee. The board, upon application and for good
cause shown, may grant an extension for an additional period
ending on the later of 36 months from the end of the initial
one-year period or December 31, 2012.]
* * *
§ 1211. Reports of board.
* * *
(d.1) Impact of interactive gaming.--
[(1)] Commencing one year after the issuance of the
first interactive gaming certificate and continuing annually
thereafter, the Department of Drug and Alcohol Programs or
successor agency shall prepare and distribute a report to the
Governor and the standing committees of the General Assembly
with jurisdiction over the board on the impact of interactive
gaming on compulsive and problem gambling and gambling
addiction in this Commonwealth. The report shall be prepared
by a private organization or entity with expertise in serving
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and treating the needs of persons with compulsive gambling
addictions, which organization or entity shall be selected by
the Department of Drug and Alcohol Programs or successor
agency. The report may be prepared and distributed in
coordination with the board. Any costs associated with the
preparation and distribution of the report shall be borne by
all interactive gaming certificate holders. The board shall
be authorized to assess a fee against each interactive gaming
certificate holder for these purposes.
[(2) Commencing one year after the issuance of the first
interactive gaming certificate and continuing annually
thereafter, the board shall prepare and distribute a report
to the Governor and the standing committees of the General
Assembly with the jurisdiction over the board on the impact
of interactive gaming on licensed gaming entities in this
Commonwealth.]
* * *
[(d.3) Study.--The board shall study and annually report to
the standing committees of the General Assembly with
jurisdiction over the board on developments in gaming technology
and the impact, if any, new technologies and expansion of gaming
are having or are expected to have on the sustainability and
competitiveness of the gaming industry in this Commonwealth. The
initial report shall be due one year after the effective date of
this subsection. Each report shall specifically address the
following:
(1) Awareness and growth, to the extent known, of any
unregulated commercial gaming products, such as e-Sports and
other such digital-based computer or video technology.
(2) New gaming products, if any, which have been
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introduced in other states or jurisdictions.
(3) Any gaming products which the board may authorize
pursuant to its regulatory authority under this part.
(4) Any legislative or administrative concerns regarding
traditional, new or emerging gaming technologies with
recommendations regarding resolution of such concerns.
(5) Any cannibalization from Category 4 slot machine
licensees on Category 1, Category 2 or Category 3 slot
machine licensees.]
* * *
§ 1213. License or permit prohibition.
The following apply:
* * *
(4) For purposes of this section, a felony offense is
any of the following:
* * *
(ii) An offense which, under the laws of another
jurisdiction, is[:
(A) classified as a felony; or
(B)] punishable by imprisonment for more than
five years.
* * *
Section 7. Section 1305.1(d) of Title 4 is amended and the
section is amended by adding a subsection to read:
§ 1305.1. Category 4 slot machine license.
* * *
(d) Number of slot machines.--The following apply:
(1) [Subject to paragraphs (2) and (3), a] A Category 4
slot machine licensee may operate not fewer than 300 and not
more than [750] 1,000 slot machines at the Category 4
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licensed facility.
[(2) A Category 1 or Category 2 slot machine licensee
who is a Category 4 slot machine licensee may not operate
slot machines above the authorized complement under section
1210 (relating to number of slot machines).
(3) (i) A Category 3 slot machine licensee who is a
Category 4 slot machine licensee may submit a petition to
operate slot machines above the Category 3 authorized
complement under section 1305 (relating to Category 3
slot machine license).
(ii) No later than 60 days after the board approves
a petition to operate slot machines above the Category 3
authorized complement in accordance with subparagraph
(i), the Category 3 slot machine licensee shall pay a
nonrefundable authorization fee in the amount of $10,000
per authorized additional slot machine.
(iii) A qualified entity who is a Category 4 slot
machine licensee shall submit to the board a petition to
operate slot machines not to exceed the limit under
paragraph (1). No later than 60 days after the board
approves a petition to operate slot machines at a
Category 4 licensed facility, the qualified entity must
pay a nonrefundable authorization fee in the amount of
$10,000 per authorized slot machine.
(4) A slot machine licensee may not reduce the number of
slot machines and table games in operation at a Category 1,
Category 2 or Category 3 licensed facility, as of the
effective date of this section, unless the board approves of
a reduction and the reduction is not a result of the conduct
of gaming at a Category 4 licensed facility.]
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(5) A Category 4 slot machine licensee may submit to the
board a petition to operate additional slot machines not to
exceed the limit under paragraph (1). No later than 60 days
after the board approves a petition to operate additional
slot machines at a Category 4 licensed facility, the slot
machine licensee must pay a nonrefundable authorization fee
in the amount of $10,000 per authorized slot machine.
* * *
(h) Remote video surveillance.--A Category 4 licensed
facility that is also a Category 1, Category 2 or Category 3
licensed facility may utilize remote video surveillance of slot
machines located at the Category 4 licensed facility by
surveillance located at the Category 1, Category 2 or Category 3
licensed facility.
Section 8. Sections 1312 and 1317.1(b)(1) of Title 4 are
amended to read:
§ 1312. Divestiture of disqualifying applicant.
In the event that any [slot machine] license application is
not approved by the board based on a finding that an individual
who is a principal or has an interest in the person applying for
the license does not meet the character requirements [of section
1310 (relating to slot machine license application character
requirements)] under this part or any of the eligibility
requirements under this part, or a person who purchases a
controlling interest in a licensed gaming entity in violation of
section 1328 (relating to change in ownership or control of slot
machine licensee), the board may afford the individual the
opportunity to completely divest his interest in the person, its
affiliate, intermediary, subsidiary or holding company seeking
the license and, after such divestiture, reconsider the person's
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or applicant's suitability for licensure in an expedited
proceeding and may, after such proceeding, issue the person or
applicant a [slot machine] license. The board shall approve the
terms and conditions of any divestiture under this section.
Under no circumstances shall any divestiture be approved by the
board if the compensation for the divested interest exceeds the
cost of the interest.
§ 1317.1. Manufacturer licenses.
* * *
(b) Requirements.--An application for a manufacturer license
shall be on the form required by the board, accompanied by the
application fee, and shall include all of the following:
(1) The name and business address of the applicant and
the applicant's affiliates, intermediaries, subsidiaries and
holding companies; the principals and key employees of each
business; and a list of employees and their positions within
each business, as well as any financial information from the
most recent tax year as required by the board.
* * *
Section 9. Section 1317.2(a) of Title 4 is amended and the
section is amended by adding a subsection to read:
§ 1317.2. Gaming service provider.
[(a) Development of classification system.--The board shall
develop a classification system governing the certification,
registration and regulation of gaming service providers and
individuals and entities associated with them. The
classification system shall be based upon the following:
(1) The monetary value or amount of business conducted
or expected to be conducted by the gaming service provider
with an applicant for a slot machine license or a slot
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machine licensee in any consecutive 12-month period.
(2) Whether the employees of the gaming service provider
will have access to the gaming floor or any gaming-related
restricted area of a licensed facility.
(3) The board's analysis of the goods or services
provided or to be provided by the gaming service provider.]
(a.1) Slot machine licensee thresholds.--
(1) A slot machine licensee that contracts with or
otherwise engages in business with a gaming service provider
in an aggregate amount that is less than $50,000 in any
consecutive 12-month period shall provide notification to the
board prior to the gaming service provider's provision of
goods or services.
(2) A slot machine licensee that contracts with or
otherwise engages in business with a gaming service provider
in an aggregate amount that is between $50,001 and $250,000
in any consecutive 12-month period shall ensure that the
gaming service provider is registered with the board prior to
the gaming service provider's provision of goods or services.
(3) A slot machine licensee that contracts with or
otherwise engages in business with a gaming service provider
in an aggregate amount that is between $250,001 and $750,000
in any consecutive 12-month period shall ensure that the
gaming service provider has obtained a certificate from the
board prior to the gaming service provider's provision of
goods or services.
(4) The thresholds under paragraphs (1), (2) and (3)
shall be adjusted annually by the board by applying the
percentage change in the Consumer Price Index for All Urban
Consumers (CPI-U) for the Pennsylvania, New Jersey, Delaware
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and Maryland area for the most recent 12-month period for
which figures have been officially reported by the United
States Department of Labor, Bureau of Labor Statistics,
immediately prior to the date the adjustment is due to take
effect.
* * *
Section 10. Section 1317.3(a) and (d)(3) and (4) of Title 4
are amended to read:
§ 1317.3. Nongaming service provider.
(a) Notification required.--
(1) A slot machine licensee or applicant for a slot
machine license that contracts with or otherwise engages in
business in an aggregate amount that exceeds $500,000 in any
consecutive 12-month period with a nongaming service provider
shall provide notification to the board prior to[:
(i)] the nongaming service provider's provision of
goods or services. [at the slot machine licensee's
licensed facility; or
(ii) the provision of goods or services for use in
the operation of the slot machine licensee's licensed
facility.
(2) Notification under this section shall be on a form
and in a manner as determined by the board. The board may
impose a fee, not to exceed $100, in connection with the
notification.]
(3) The threshold under paragraph (1) shall be adjusted
annually by the board by applying the percentage change in
the Consumer Price Index for All Urban Consumers (CPI-U) for
the Pennsylvania, New Jersey, Delaware and Maryland area for
the most recent 12-month period for which figures have been
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officially reported by the United States Department of Labor,
Bureau of Labor Statistics, immediately prior to the date the
adjustment is due to take effect.
* * *
(d) Conditions.--A slot machine licensee or applicant for a
slot machine license that contracts or otherwise engages in
business with a nongaming service provider shall be subject to
the following conditions:
* * *
[(3) The slot machine licensee or applicant for a slot
machine license shall ensure that employees of the nongaming
service provider do not enter the gaming floor or a gaming-
related restricted area while providing the goods or services
described in subsection (b)(2).
(4) The slot machine licensee or applicant for a slot
machine license shall report to the board an employee of a
nongaming service provider that does any of the following:
(i) Enters the gaming floor or a gaming-related
restricted area of the licensed facility.
(ii) Commits an act that adversely affects the
public interest or integrity of gaming.]
* * *
Section 11. Section 1318(a) and (b)(3) of Title 4 are
amended and the section is amended by adding a subsection to
read:
§ 1318. Occupation permit application.
(a) Application.--Any person who desires to be a gaming
employee and has a bona fide offer of employment from a licensed
gaming entity shall apply to the board for an occupation permit.
The board, in the board's discretion, may issue a temporary
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occupation permit after the submission of an application that
allows a person to be employed as a gaming employee before the
issuance of the person's occupation permit. A person may not be
employed as a gaming employee unless and until that person holds
an appropriate occupation permit or temporary occupation permit
issued under this section. [The board may promulgate regulations
to reclassify a category of nongaming employees or gaming
employees upon a finding that the reclassification is in the
public interest and consistent with the objectives of this
part.]
(b) Requirements.--The application for an occupation permit
shall include, at a minimum:
* * *
(3) The criminal history record of the person, as well
as the person's consent for the Pennsylvania State Police to
conduct a [background investigation.] criminal history record
information check provided by the Pennsylvania Access to
Criminal History system.
* * *
(d) Nongaming position.-- An applicant for a position
categorized as nongaming shall not be required to obtain an
occupation permit.
Section 12. Section 1320(b.1)(8) of Title 4 is amended and
the subsection is amended by adding a paragraph to read:
§ 1320. Slot machine testing and certification standards.
* * *
(b.1) Use of private testing and certification facilities.--
Notwithstanding any other provisions of this part or regulation
of the board, if a slot machine is tested and certified by a
private testing and certification facility registered with the
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board, the board shall use an abbreviated certification process
requiring only that information determined by it to be necessary
to consider the issuance of a slot machine certification under
this section. Within one year of the effective date of this
subsection, the board shall promulgate regulations that:
* * *
[(8) Require slot machines submitted for abbreviated
certification to be approved or denied by the board within 30
days from the date of submission to the board. If the board
fails to act within the 30-day period, the abbreviated
certification shall be deemed conditionally approved.]
(8.1) Require that if a slot machine has been approved
by another state gaming regulator that has offered slot
machines in that state for at least 10 years, upon filing,
the slot machine shall be conditionally approved and, after
90 days, shall be deemed finally approved with the licensee
holding the board harmless for any resulting liability.
* * *
Section 13. Sections 1322(c) introductory paragraph, 1325(d)
(3), 1326(a) and 13A02(1) of Title 4 are amended to read:
§ 1322. Slot machine accounting controls and audits.
* * *
(c) Internal control.--Each slot machine license applicant
shall submit to the board and department, in such manner as the
board shall require, a description of its administrative and
accounting procedures in detail, including its written system of
internal control that shall be deemed approved upon filing
subject to modifications requested by the board. Each written
system of internal control shall include:
* * *
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§ 1325. License or permit issuance.
* * *
(d) Trusts and similar business entities.--The board shall
determine the eligibility of a trust or similar business entity
to be a licensed entity in accordance with the following:
* * *
(3) No trust or similar business entity may hold any
beneficial interest in a licensed entity unless the board
determines that the trust or similar business entity is not
engaged in any activity or otherwise being used to evade the
public protections under this part, including [sections]
section 1512 (relating to financial and employment interests)
[and 1513 (relating to political influence)].
§ 1326. Renewals.
(a) Renewal.--All permits, licenses, registrations or
certificates issued under this part unless otherwise provided
shall be subject to renewal every five years. Nothing in this
subsection shall relieve a licensee, permittee or holder of a
certificate or registration of the affirmative duty to notify
the board of any changes relating to the status of its license,
permit, certificate or registration or to any other information
contained in the application materials on file with the board.
The application for renewal shall be submitted at least [180] 60
days prior to the expiration of the permit, license,
registration or certificate and shall include an update of the
information contained in the initial and any prior renewal
applications and the payment of any renewal fee required by this
part. Unless otherwise specifically provided in this part, the
amount of any renewal fee shall be calculated by the board to
reflect the longer renewal period. A permit, license,
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registration or certificate for which a completed renewal
application and fee, if required, has been received by the board
will continue in effect unless and until the board sends written
notification to the holder of the permit, license, registration
or certificate that the board has denied the renewal of such
permit, license, registration or certificate.
* * *
§ 13A02. Regulatory authority.
The board shall promulgate regulations:
(1) Establishing standards and procedures for table
games and table game devices or associated equipment,
including standards distinguishing electronic gaming tables,
fully automated electronic gaming tables and traditional
gaming tables. The standards and procedures shall provide for
any new table games or gaming tables and variations or
composites of approved table games or gaming tables, provided
the board determines that the new table game, gaming table or
any variations or composites or other approved table games or
gaming tables are suitable for use after a test or
experimental period under the terms and conditions as the
board may deem appropriate. Unless the board determines that
the submission contains a technical defect, a new table game,
including rules of the table game, shall be deemed
conditionally approved by the board upon submission if the
new table game or rules have been approved by any other state
gaming regulator within the United States that has offered
table games for at least 10 years. If the board fails to
issue an order approving or denying the new table game or
rules within 90 days of submission, the new table game or
rules shall be deemed finally approved by operation of law. A
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licensee seeking board approval of a new table game or rules
shall hold the board harmless from any liability arising from
the play of the new table game or rules prior to final
approval.
* * *
Section 14. Section 13A41(b.1)(8) of Title 4 is amended and
the subsection is amended by adding a paragraph to read:
§ 13A41. Table game device and associated equipment testing and
certification standards.
* * *
(b.1) Use of private testing and certification facilities.--
Notwithstanding any provision of this part or regulation of the
board, if a table game device or associated equipment is tested
and certified by a private testing and certification facility
registered with the board, the board shall use an abbreviated
certification process requiring only that information determined
by it to be necessary to consider the issuance of a table game
device or associated equipment certification under this section.
Within one year of the effective date of this subsection, the
board shall promulgate regulations that:
* * *
[(8) Require table game devices and associated equipment
submitted for abbreviated certification to be approved or
denied by the board within 30 days from the date of
submission to the board. If the board fails to act within the
30-day period, the abbreviated certification shall be deemed
conditionally approved.]
(8.1) Require that if a table game has been approved by
another state gaming regulator that has offered table games
in that state for at least 10 years, upon filing, the table
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game shall be conditionally approved and, after 90 days,
shall be deemed finally approved with the licensee holding
the board harmless for any resulting liability.
* * *
Section 15. Sections 13B32(b)(4) and 13B41 heading and (a)
(1) of Title 4 are amended to read:
§ 13B32. Internal, administrative and accounting controls.
* * *
(b) Filing.--Notwithstanding subsection (a), the procedures
and controls may be implemented by an interactive gaming
certificate holder upon the filing of the procedures and
controls with the board. Each procedure or control submission
shall contain both narrative and diagrammatic representations of
the system to be utilized and shall include but need not be
limited to:
* * *
(4) Procedures for the registration of players and
establishment of interactive gaming accounts to prevent fraud
and to assure the identity of the account holder, including a
procedure for authenticating the age, identity and physical
address of an applicant for an interactive gaming account and
whether the applicant is a person prohibited from
establishing or maintaining an account under section 13B22
(relating to establishment of interactive gaming accounts).
* * *
§ 13B41. Interactive skill games, interactive games and
interactive gaming devices and associated equipment
testing and certification standards.
(a) Testing required.--
(1) No interactive skill game, interactive game or
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interactive gaming device or associated equipment shall be
used to conduct interactive gaming unless it has been tested
and certified by the board. The board may, in its discretion
and for the purpose of expediting the approval process, refer
testing to any testing laboratory as approved by the board.
* * *
Section 16. The definition of "sporting event" in section
13C01 of Title 4 is amended and the section is amended by adding
a definition to read:
§ 13C01. Definitions.
The following words and phrases when used in this chapter
shall have the meanings given to them in this section unless the
context clearly indicates otherwise:
"E-Sports event." An organized competition in which players
compete against each other, individually or as teams, in the
play of video games, and the outcome of the game is determined
predominantly by the skill of the player not the element of
chance.
* * *
"Sporting event." A professional or collegiate sports or
athletic event [or], a motor race event or an e-Sports event.
* * *
Section 17. Sections 1401(b) and (d) and 1408(c) of Title 4
are amended to read:
§ 1401. Slot machine licensee deposits.
* * *
[(b) Initial deposit of funds.--Not later than two business
days prior to the commencement of slot machine operations by a
slot machine licensee, a slot machine licensee shall deposit and
maintain the following sums in its account to guarantee the
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payment of funds to the Commonwealth under this part and as
security for its obligations under section 1405 (relating to
Pennsylvania Race Horse Development Trust Fund):
(1) For a Category 1 or Category 2 slot machine
licensee, $1,500,000.
(2) For a Category 3 slot machine licensee, $1,000,000.
(3) For a Category 4 slot machine licensee, $1,250,000.
No additional minimum deposit shall be required from a slot
machine licensee if a slot machine licensee is granted a table
game operation certificate under Chapter 13A (relating to table
games).]
* * *
[(d) Return of funds.--The funds deposited into its account
shall not be returned to a slot machine licensee unless the slot
machine licensee ceases conducting business under its license
and relinquishes all rights to do so in the future. In that
case, the balance of funds in the account attributable to such
licensee, minus any unpaid amounts due and payable to the
Commonwealth under this part or due and payable under section
1405, shall be returned to the licensee.]
§ 1408. Transfers from State Gaming Fund.
* * *
(c) Local law enforcement grants.--
(1) Except as provided in subsection (c.1), annually,
the sum of $2,000,000 shall be transferred to the board for
the purpose of issuing grants to local law enforcement
agencies to investigate violations of and enforce laws
relating to unlawful gambling in this Commonwealth.
(2) Grants awarded under this subsection may also be
used by local law enforcement agencies for:
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(i) Enforcement of criminal laws related to
gambling, including, but not limited to, related thefts,
unattended children and harassment.
(ii) Educational, prevention and diversion programs
related to unlawful gambling and crimes related to
gambling.
(3) For purposes of this subsection, the term "local law
enforcement agency" shall include the Pennsylvania State
Police when conducting unlawful gambling enforcement and
prevention activities in a municipality which does not have a
municipal police department and in which the Pennsylvania
State Police provide the municipality with primary police
coverage.
* * *
Section 18. Section 1513 of Title 4 is repealed:
[§ 1513. Political influence.
(a) Contribution restriction.--The following persons shall
be prohibited from contributing any money or in-kind
contribution to a candidate for nomination or election to any
public office in this Commonwealth, or to any political party
committee or other political committee in this Commonwealth or
to any group, committee or association organized in support of a
candidate, political party committee or other political
committee in this Commonwealth:
(1) An applicant for a slot machine license,
manufacturer license, supplier license, principal license,
key employee license, interactive gaming license or horse or
harness racing license.
(2) A slot machine licensee, licensed manufacturer,
licensed supplier, interactive gaming operator or licensed
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racing entity.
(3) A licensed principal or licensed key employee of a
slot machine licensee, licensed manufacturer, licensed
supplier, interactive gaming operator or licensed racing
entity.
(4) An affiliate, intermediary, subsidiary or holding
company of a slot machine licensee, licensed manufacturer,
licensed supplier, interactive gaming operator or licensed
racing entity.
(5) A licensed principal or licensed key employee of an
affiliate, intermediary, subsidiary or holding company of a
slot machine licensee, licensed manufacturer, licensed
supplier, interactive gaming operator or licensed racing
entity.
(6) A person who holds a similar gaming license in
another jurisdiction and the affiliates, intermediaries,
subsidiaries, holding companies, principals or key employees
thereof.
(a.1) Contributions to certain associations and
organizations barred.--The individuals prohibited from making
political contributions under subsection (a) shall not make a
political contribution of money or an in-kind contribution to
any association or organization, including a nonprofit
organization, that has been solicited by, or knowing that the
contribution or a portion thereof will be contributed to, the
elected official, executive-level public employee or candidate
for nomination or election to a public office in this
Commonwealth.
(a.2) Internet website.--
(1) The board shall establish an Internet website that
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includes a list of all applicants for and holders of a slot
machine license, manufacturer license, supplier license or
racing entity license, and the affiliates, intermediaries,
subsidiaries, holding companies, principals and key employees
thereof, all persons holding a similar gaming license in
another jurisdiction, and the affiliates, intermediaries,
subsidiaries, holding companies, principals and key employees
thereof, and any other entity in which the applicant or
licensee has any debt or equity security or other ownership
or profits interest. An applicant or licensee shall notify
the board within seven days of the discovery of any change in
or addition to the information. The list shall be published
semiannually in the Pennsylvania Bulletin.
(2) An individual who acts in good faith and in reliance
on the information on the Internet website shall not be
subject to any penalties or liability imposed for a violation
of this section.
(3) The board shall request the information required
under paragraph (1) from persons licensed in another
jurisdiction who do not hold a license in this Commonwealth
and from regulatory agencies in the other jurisdiction. If a
licensee in another jurisdiction refuses to provide the
information required under paragraph (1), the person and its
officers, directors or persons with a controlling interest
shall be ineligible to receive any license under this part.
(b) Annual certification.--The chief executive officer, or
other appropriate individual, of each applicant for a slot
machine license, manufacturer license or supplier license,
licensed racing entity, licensed supplier, licensed manufacturer
or licensed gaming entity shall annually certify under oath to
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the board and the Department of State that such applicant or
licensed racing entity, licensed supplier, licensed manufacturer
or licensed gaming entity has developed and implemented internal
safeguards and policies intended to prevent a violation of this
provision and that such applicant or licensed racing entity or
licensed gaming entity has conducted a good faith investigation
that has not revealed any violation of this provision during the
past year.
(c) Penalties.--
(1) The first violation of this section by a licensed
gaming entity or any person that holds a controlling interest
in such gaming entity, or a subsidiary company thereof, or
any officer, director or management-level employee of such
licensee shall be punishable by a fine equal to an amount not
less than the average single day's gross terminal revenue and
gross table game revenue of the licensed gaming entity; a
second violation of this section, within five years of the
first violation, shall be punishable by at least a one-day
suspension of the license held by the licensed gaming entity
and a fine equal to an amount not less than two times the
average single day's gross terminal revenue and gross table
game revenue of the licensed gaming entity; a third violation
of this section within five years of the second violation
shall be punishable by the immediate revocation of the
license held by the licensed gaming entity. Following
revocation, the board shall consider appointing a trustee in
accordance with section 1332 (relating to appointment of
trustee).
(2) The first violation of this section by a
manufacturer or supplier licensed pursuant to this part or by
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any person that holds a controlling interest in such
manufacturer or supplier, or a subsidiary company thereof, or
any officer, director or management-level employee of such a
licensee shall be punishable by a fine equal to an amount not
less than a single day's average of the gross profit from
sales made by the manufacturer or supplier in Pennsylvania
during the preceding 12-month period or portion thereof in
the event the manufacturer or supplier has not operated in
Pennsylvania for 12 months; a subsequent violation of this
section within five years of a prior violation shall be
punishable by a one-month suspension of the license held by
the manufacturer or supplier and a fine equal to an amount
not less than two times a single day's average of the gross
profit from sales made by the manufacturer or supplier in
Pennsylvania during the preceding 12-month period or portion
thereof in the event the manufacturer or supplier has not
operated in Pennsylvania for 12 months.
(3) In no event shall the fine imposed under this
section be an amount less than $100,000 for each violation.
In addition to any fine or sanction that may be imposed by
the board under this subsection, any individual who makes a
contribution in violation of this section commits a
misdemeanor of the third degree.
(d) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection:
"Contribution." Any payment, gift, subscription, assessment,
contract, payment for services, dues, loan, forbearance, advance
or deposit of money or any valuable thing made to a candidate or
political committee for the purpose of influencing any election
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in this Commonwealth or for paying debts incurred by or for a
candidate or committee before or after any election. The term
shall include the purchase of tickets for events including
dinners, luncheons, rallies and other fundraising events; the
granting of discounts or rebates not available to the general
public; or the granting of discounts or rebates by television
and radio stations and newspapers not extended on an equal basis
to all candidates for the same office; and any payments provided
for the benefit of any candidate, including payments for the
services of a person serving as an agent of a candidate or
committee by a person other than the candidate or committee or
person whose expenditures the candidate or committee must
report. The term also includes any receipt or use of anything of
value received by a political committee from another political
committee and also includes any return on investments by a
political committee.
"Political committee." Any committee, club, association or
other group of persons which receives contributions or makes
expenditures.]
Section 19. Section 1517(a.2)(1)(iii) and (c)(13) and (14)
of Title 4 are amended to read:
§ 1517. Investigations and enforcement.
* * *
(a.2) Office of Enforcement Counsel.--
(1) There is established within the bureau an Office of
Enforcement Counsel which shall act as the prosecutor in all
noncriminal enforcement actions initiated by the bureau under
this part and shall have the following powers and duties:
* * *
(iii) Initiate, in its sole discretion, proceedings
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for noncriminal violations of this part by filing a
complaint or other pleading with the board. A complaint
or pleading for noncriminal violations of this part shall
be commenced within one year of either the occurrence of
the violation or of the board's discovery of a violation.
* * *
(c) Powers and duties of the Pennsylvania State Police.--The
Pennsylvania State Police shall have the following powers and
duties:
* * *
[(13) A member of the Pennsylvania State Police assigned
to duties of enforcement under this part shall not be counted
toward the complement as defined in the act of December 13,
2001 (P.L.903, No.100), entitled "An act repealing in part a
limitation on the complement of the Pennsylvania State
Police."]
[(14) By March 1 of each year, the Commissioner of the
Pennsylvania State Police shall submit a report to the
Appropriations Committee of the Senate, the Community,
Economic and Recreational Development Committee of the
Senate, the Appropriations Committee of the House of
Representatives and the Gaming Oversight Committee of the
House of Representatives. The report shall summarize all law
enforcement activities at each licensed facility during the
previous calendar year and shall include all of the
following:
(i) The number of arrests made and citations issued
at each licensed facility and the name of the law
enforcement agency making the arrest or issuing the
citation.
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(ii) A list of specific offenses charged for each
arrest made or citation issued.
(iii) The number of criminal prosecutions resulting
from arrests made or citations issued.
(iv) The number of convictions resulting from
prosecutions reported under subparagraph (iii).
(v) The number of Pennsylvania State Police troopers
assigned to each licensed facility and to the gaming unit
at the Pennsylvania State Police headquarters.
(vi) The number and the subject matter of complaints
made against Pennsylvania State Police troopers in
licensed facilities and the type of disciplinary actions
taken by the Pennsylvania State Police, if any, against
the Pennsylvania State Police troopers.
(vii) The closest local police station, Pennsylvania
State Police station and regional Pennsylvania State
Police headquarters to each licensed facility.]
* * *
Section 20. Section 1518(c)(1)(vi) of Title 4 is amended and
the subsection is amended by adding paragraphs to read:
§ 1518. Prohibited acts; penalties.
* * *
(c) Board-imposed administrative sanctions.--
(1) In addition to any other penalty authorized by law,
the board may impose without limitation the following
sanctions upon any licensee or permittee:
* * *
(vi) Assess administrative penalties as necessary to
punish misconduct and to deter future violations[.],
which may include fines which shall not exceed $1,000 for
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a first violation, $5,000 for a second violation
occurring within one year of the first violation and
$10,000 for subsequent violations occurring within one
year of the first violation.
* * *
(1.1) A licensee shall not be liable:
(i) If the violation is not found to be willful and
the licensee acted in accordance with board-approved
internal controls.
(ii) For a violation committed by another entity
that holds a license under this part and the licensee
charged with the violation neither knew nor should have
known about the conduct at issue.
(1.2) If a licensee establishes any of the affirmative
defenses under paragraph (1.1), the board's sole remedy
against the licensee shall be to require the licensee to
correct any internal controls discovered to be inadequate as
a result of the violation.
* * *
Section 21. Sections 1521(b.1) and 1802 of Title 4 are
amended to read:
§ 1521. Liquor licenses at licensed facilities.
* * *
(b.1) Liquor Code sanctions.--[Notwithstanding any other
provision of law, a] A person holding a slot machine license
that also holds a license issued by the Pennsylvania Liquor
Control Board shall not be subject to the provisions of section
471(c) of the Liquor Code. [In addition, if a fine is imposed
under section 471(b) of the Liquor Code, it shall be for not
less than $250 nor more than $25,000. The prior citation history
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of the slot machine licensee shall be considered in determining
the amount of the fine.]
* * *
§ 1802. Submission of fingerprints and photographs.
Appointees to the board and commission, employees and
prospective employees [engaged in the service of the commissions
or the board] of the board and commission and applicants under
this part shall submit [to fingerprinting and photographing by]
fingerprints and photographs to the Pennsylvania State Police
[or by a local law enforcement agency capable of submitting
fingerprints and photographs electronically to the Pennsylvania
State Police] utilizing the [Integrated Automated Fingerprint
Identification System] Multi-Biometric Identification System and
the Commonwealth Photo Imaging Network or in a manner and in
such form as may be provided by the Pennsylvania State Police.
Fingerprinting pursuant to this part shall require, at a
minimum, the submission of a full set of fingerprints.
Photographing pursuant to this part shall require submission to
photographs of the face and any scars, marks or tattoos for
purposes of comparison utilizing an automated biometric imaging
system. The Pennsylvania State Police shall conduct a State
record check and submit fingerprints when requested by the
[commissions] commission or the board to the Federal Bureau of
Investigation for purposes of verifying the identity of the
applicants and obtaining records of criminal arrests and
convictions in order to prepare criminal history background
investigations under section 1801 (relating to duty to provide).
Fingerprints and photographs obtained pursuant to this part may
be maintained by the [commissions] commission, the board and the
Pennsylvania State Police for use pursuant to this part and for
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general law enforcement purposes. In addition to any other fee
or cost assessed by the [commissions] commission or the board,
an applicant shall pay for the cost of fingerprinting and
photographing.
Section 22. Title 4 is amended by adding a section to read:
§ 1901.4. Live streaming on casino floor.
(a) Live streaming.--A social media influencer may live
stream from a gaming floor with advance notice and approval from
the board and a licensee.
(b) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
"Social media influencer." An individual who endorses or
promotes a product or service through social media in exchange
for compensation.
Section 23. Section 1902(b) of Title 4 is amended to read:
§ 1902. Severability.
* * *
(b) Limitation.--If [any of] the provisions of section [1201
(relating to Pennsylvania Gaming Control Board established) or]
1209 (relating to slot machine license fee) or [their] its
application to any person or circumstance are held to be invalid
by any court, the remaining provisions of this title and its
application shall be void.
Section 24. The definitions of "applicant," "background
investigation," "establishment licensee," "gaming employee,"
"manufacturer license," "manufacturer licensee," "terminal
operator," "terminal operator licensee," "truck stop
establishment" and "video gaming terminal" in section 3102 of
Title 4 are amended and the section is amended by adding
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definitions to read:
§ 3102. Definitions.
The following words and phrases when used in this part shall
have the meanings given to them in this section unless the
context clearly indicates otherwise:
* * *
"Applicant." A person who, on [his] the person's own behalf
or on behalf of another, [applies for permission to engage in an
act or activity that is regulated under the provisions of this
part.] is applying for a registration, permit, certification,
license, qualification or other credential issued by the board
pursuant to this part. If an applicant is a person other than
the individual, the board shall determine the associated persons
whose qualifications are necessary as a precondition to the
licensing of the applicant.
* * *
"Background investigation." A security, criminal, credit and
suitability investigation of a person as provided for in this
part that includes the status of taxes owed to [the United
States,] the Commonwealth and its political subdivisions.
* * *
"Establishment licensee." A truck stop establishment that
holds an establishment license under this part.
* * *
"Gaming employee."
(1) Any of the following:
(i) An employee of a terminal operator licensee[,
establishment licensee] or supplier licensee [that] who
is not a key employee and is involved in the conduct of
video gaming.
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(ii) An employee of a supplier licensee whose duties
are directly involved with the repair or distribution of
video gaming terminals or associated equipment sold or
provided to a terminal operator licensee within this
Commonwealth as determined by the board.
(iii) An employee of an establishment licensee who
is designated by the establishment licensee as a gaming
manager.
(2) The term does not include nongaming personnel as
determined by the board [or an employee of an establishment
licensee].
"Gaming manager." A person designated by an establishment
licensee as being:
(1) responsible for the management, supervision and
training of other establishment licensee employees regarding
the conduct of video gaming;
(2) responsible for coordinating video gaming operations
with a terminal operator; and
(3) available to promptly address any gaming-related
issues that arise at the premises of an establishment
licensee.
* * *
"Manufacturer license." A license issued by the board under
this part authorizing a manufacturer to manufacture or produce
video gaming terminals, redemption terminals or associated
equipment for use in this Commonwealth for video gaming
purposes.
"Manufacturer licensee." A person that holds a manufacturer
license issued by the board under this part.
* * *
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"Skill gaming terminal." As defined in section 5102
(relating to definitions).
* * *
"Terminal operator." A person that holds a terminal operator
license and owns, services or maintains video gaming terminals
for placement and operation on the premises of [an establishment
licensee] a truck stop establishment licensed by the board under
this part.
* * *
"Terminal operator licensee." A person that holds a terminal
operator license issued by the board under this part.
* * *
"Truck stop establishment." A premises that:
(1) Is equipped with diesel islands used for fueling
commercial motor vehicles.
(2) Has sold on average [50,000] 10,000 gallons of
diesel or biodiesel fuel or more each month for the previous
12 months or is projected to sell an average of [50,000]
10,000 gallons of diesel or biodiesel fuel or more each month
for the next 12 months.
(3) Has at least 20 parking spaces dedicated for
commercial motor vehicles.
(4) Has a convenience store.
(5) Is situated on a parcel of land of not less than
three acres that the truck stop establishment owns or leases.
(6) Is not located on any property owned by the
Pennsylvania Turnpike.
* * *
"Video gaming terminal."
(1) A mechanical or electrical contrivance, terminal,
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machine or other device approved by the board that, upon
insertion of cash or cash equivalents, is available to play
or operate one or more gambling games, the play of which
utilizes a random number generator and:
(i) May award a winning player either a free game or
credit that shall only be redeemable for cash or cash
equivalents at a redemption terminal.
(ii) May utilize video displays.
(iii) May use an electronic credit system for
receiving wagers and making payouts that are only
redeemable at a redemption terminal.
(2) Associated equipment necessary to conduct the
operation of the contrivance, terminal, machine or other
device.
(3) The term does not include a slot machine operated at
a licensed facility in accordance with Part II (relating to
gaming), a skill gaming terminal or a coin-operated amusement
game.
(4) The term does not include "lottery" as defined under
the act of August 26, 1971 (P.L.351, No.91), known as the
State Lottery Law.
Section 25. Sections 3301(b)(8) and 3505(a) of Title 4 are
amended to read:
§ 3301. Powers of board.
* * *
(b) Specific powers.--The board shall have the power and
duty:
* * *
(8) To require prospective and existing video gaming
employees, independent contractors, applicants, permittees
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and licensees to submit [to fingerprinting by] fingerprints
to the Pennsylvania State Police [or its authorized
designee]. The Pennsylvania State Police [or its authorized
designee] shall conduct a State record check and submit the
fingerprints to the Federal Bureau of Investigation for
purposes of verifying the identity of the individual and
obtaining records of criminal arrests and convictions.
* * *
§ 3505. Key employee licenses.
(a) License required.--[All key employees] A key employee,
including a gaming manager, shall obtain a key employee license
from the board.
* * *
Section 26. Section 3514 of Title 4 is amended by adding a
subsection to read:
§ 3514. Establishment licenses.
* * *
(g) Prohibition.--A gaming manager may not be licensed as an
employee of more than one establishment licensee.
Section 27. Section 3515 of Title 4 is amended to read:
§ 3515. License or permit prohibition.
The following apply:
(1) The board shall be prohibited from granting a
license under this part to any applicant who has been
convicted of a gambling-related felony offense in any
jurisdiction. The board shall determine, in the board's sole
discretion, whether a felony offense is gambling-related.
[(2) In addition to the prohibition under paragraph (1),
the board shall be prohibited from granting the following:
(i) A principal license or key employee license to
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an individual who has been convicted in a jurisdiction of
a misdemeanor gambling offense, unless 15 years have
elapsed from the date of conviction for the offense.
(ii) A gaming employee permit or a license other
than a principal license or key employee license to an
individual who has been convicted in a jurisdiction of a
misdemeanor gambling offense, unless 15 years have
elapsed from the date of conviction for the offense.
(iii) An establishment license to an applicant who
has been convicted in a jurisdiction of a misdemeanor
gambling offense, unless 15 years have elapsed from the
date of conviction for the offense.
(3) Following the expiration of any prohibition period
applicable to an applicant under paragraph (2), in
determining whether to issue a license or permit, the board
shall consider the following factors:
(i) The nature and duties of the applicant's
position with the licensed entity.
(ii) The nature and seriousness of the offense or
conduct.
(iii) The circumstances under which the offense or
conduct occurred.
(iv) The age of the applicant when the offense or
conduct was committed.
(v) Whether the offense or conduct was an isolated
or a repeated incident.
(vi) Evidence of rehabilitation, including good
conduct in the community, counseling or psychiatric
treatment received and the recommendation of persons who
have substantial contact with the applicant.]
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(4) For purposes of this section, a felony offense is
any of the following:
(i) An offense classified as a felony or punishable
under the laws of this Commonwealth by imprisonment for
more than five years.
(ii) An offense which, under the laws of another
jurisdiction, is[:
(A) classified as a felony; or
(B)] punishable by imprisonment for more than
five years.
(iii) An offense under the laws of another
jurisdiction which, if committed in this Commonwealth,
would be subject to imprisonment for more than five
years.
Section 28. Section 3702(a)(1) and (b)(1) and (7) of Title 4
are amended, subsection (a) is amended by adding a paragraph and
the section is amended by adding a subsection to read:
§ 3702. Video gaming limitations.
(a) Establishment licensee limitations.--An establishment
licensee may offer video gaming terminals for play within its
premises, subject to the following:
(1) No more than [five] seven video gaming terminals may
be placed on the premises of the establishment licensee.
* * *
(13) An establishment licensee shall employ at least one
gaming manager. An establishment licensee shall not be
required to have a gaming manager on premises during the
conduct of video gaming at the establishment.
(b) Terminal operator licensee limitations.--A terminal
operator licensee may place and operate video gaming terminals
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on the premises of an establishment licensee, subject to the
following:
(1) No more than [five] seven video gaming terminals may
be placed on the premises of the establishment licensee.
* * *
(7) No terminal operator licensee may give an
establishment licensee a percentage of gross terminal revenue
other than [15%] 18% of the gross terminal revenue of the
video gaming terminals operating in the establishment
licensee's premises.
* * *
(c) Construction.--
(1) Nothing in this part shall be construed to authorize
the placement of video gaming terminals in a county that has
prohibited the placement of video gaming terminals within the
host county in accordance with section 5706 (relating to
compulsive and problem gambling).
(2) Nothing in this part shall be construed to authorize
the placement of video gaming terminals in a municipality
that has prohibited the placement of video gaming terminals
within the municipality in accordance with 53 Pa.C.S. § 502
(relating to municipal option for gaming).
Section 29. Sections 3706(d)(1) and (3) and (e) and 3905(b)
(4) of Title 4 are amended to read:
§ 3706. Compulsive and problem gambling.
* * *
(d) Mandatory training.--
(1) The board's Office of Compulsive and Problem
Gambling, in consultation with the Department of Drug and
Alcohol Programs or successor agency, shall develop a
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mandatory training program for all employees [and management]
of an establishment licensee [who oversee the establishment
licensee's video gaming area]. The training program shall
address responsible gaming and other compulsive and problem
gambling issues related to video gaming terminals.
* * *
(3) [At least one employee of the establishment licensee
who holds a valid occupation permit and has successfully
completed the training program shall be located on the
premises and supervising the video gaming area during all
times video gaming terminals are available for play.] All
employees of an establishment licensee shall successfully
complete the training program.
(e) Penalty.--An establishment licensee that fails to
fulfill the requirements of subsection (a), (b), (c) or (d)
shall be assessed by the board an administrative penalty and may
have its establishment license suspended. When determining the
penalty and number of suspension days, the board shall consider
the length of time in which the materials were not available or
[a trained employee was not located on the premises] any
employee of an establishment licensee was employed without
completing the mandatory training as required by subsection (d)
(3).
§ 3905. Prohibited acts and penalties.
* * *
(b) Criminal penalties and fines.--
* * *
(4) An individual who commits an offense in violation of
subsection (a)(16) commits a nongambling offense to be graded
in accordance with 18 Pa.C.S. § 6308 and shall be subject to
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the same penalties imposed pursuant to 18 Pa.C.S. [§§ 6308
and 6310.4 (relating to restriction of operating privileges)]
§ 6308 except that the fine imposed for a violation of
subsection (a)(16) shall be not less than $350 nor more than
$1,000.
* * *
Section 30. Section 4101(c) of Title 4 is amended and the
section is amended by adding a subsection to read:
§ 4101. Fees.
* * *
(c) Terminal increase fee.--An establishment licensee that
increases the total number of video gaming terminals within the
establishment [after submission of the renewal fee required in
subsection (b)] shall provide the board with a $250 [renewal]
fee for each additional video gaming terminal added to the
establishment within 60 days of installation of each additional
video gaming terminal.
(c.1) Terminal increase fee.--A terminal operator licensee
shall provide written notice to the board prior to placing a
video gaming terminal at a truck stop establishment and shall
provide the board with the revised contract or other
documentation evidencing the truck stop establishment's
agreement and acceptance. Within 60 days of placement, the
terminal operator licensee shall pay of fee of $1,000 to the
board for each additional video gaming terminal placed.
Additional video gaming terminals shall be subject to the same
requirements as existing video gaming terminals.
* * *
Section 31. Section 4305 of Title 4 is repealed:
[§ 4305. Political influence.
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(a) Contribution restriction.--The following persons shall
be prohibited from contributing money or an in-kind contribution
to a candidate for nomination or election to a public office in
this Commonwealth, to a political party committee or other
political committee in this Commonwealth or to a group,
committee or association organized in support of a candidate,
political party committee or other political committee in this
Commonwealth:
(1) An applicant for a terminal operator license,
manufacturer license, supplier license, principal license or
a key employee license.
(2) A terminal operator licensee, manufacturer licensee
or supplier licensee.
(3) A licensed principal or licensed key employee of a
terminal operator licensee, manufacturer licensee or supplier
licensee.
(4) An affiliate, intermediary, subsidiary or holding
company of a terminal operator licensee, manufacturer
licensee or supplier licensee.
(5) A licensed principal or licensed key employee of an
affiliate, intermediary, subsidiary or holding company of a
terminal operator licensee, manufacturer licensee or supplier
licensee.
(6) A person who holds a similar video gaming license in
another jurisdiction and the affiliates, intermediaries,
subsidiaries, holding companies, principals or key employees
thereof.
(b) Contributions to certain associations and organizations
barred.--No individual prohibited from making political
contributions under subsection (a) may make a political
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contribution of money or an in-kind contribution to an
association or organization, including a nonprofit organization,
that has been solicited by, or knowing that the contribution or
a portion thereof will be contributed to, the elected official,
executive-level public employee or candidate for nomination or
election to a public office in this Commonwealth.
(c) Internet website.--
(1) The board shall establish a publicly accessible
Internet website that includes a list of all applicants for
and holders of a terminal operator license, manufacturer
license or supplier license and the affiliates,
intermediaries, holding companies, principals and key
employees thereof, all persons holding a similar video gaming
license in another jurisdiction, and the affiliates,
intermediaries, holding companies, principals and key
employees thereof, and other entities in which the applicant
or licensee has a debt or an equity security or other
ownership or profits interest. An applicant or licensee shall
notify the board within seven days of the discovery of a
change in or addition to the information.
(2) No individual who acts in good faith and in reliance
on the information on the board's publicly accessible
Internet website shall be subject to penalty or liability
imposed for a violation of this section.
(3) The board shall request the information required
under paragraph (1) from a person licensed in another
jurisdiction who does not hold a license in this Commonwealth
and from regulatory agencies in the other jurisdiction. If a
person who is a licensee in another jurisdiction refuses to
provide the information required under paragraph (1), the
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person and its officers, directors or persons with a
controlling interest shall be ineligible to receive a license
under this part.
(d) Annual certification.--The chief executive officer, or
other appropriate individual, of each applicant for a terminal
operator license, manufacturer license or supplier license, or
manufacturer licensee, supplier licensee or terminal operator
licensee, shall annually certify under oath to the board and the
Department of State that the applicant or supplier licensee,
manufacturer licensee or terminal operator licensee has
developed and implemented internal safeguards and policies
intended to prevent a violation of this provision and that the
applicant or supplier licensee, manufacturer licensee or
terminal operator licensee has conducted a good faith
investigation that has not revealed a violation of this
subsection during the past year.
(e) Penalties.--
(1) A violation of this section by a terminal operator
licensee or a person that holds a controlling interest in the
licensee, or a subsidiary company thereof, or an officer,
director or management-level employee of the licensee shall
be punishable as follows:
(i) A first violation of this section shall be
punishable by a fine equal to an amount not less than the
average single-day gross terminal revenue of the terminal
operator licensee.
(ii) A second violation of this section, within five
years of the first violation, shall be punishable by at
least a one-day suspension of the license held by the
terminal operator licensee and a fine equal to an amount
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not less than two times the average single-day gross
terminal revenue of the terminal operator licensee.
(iii) A third violation of this section within five
years of the second violation shall be punishable by the
immediate revocation of the license held by the terminal
operator licensee.
(2) A violation of this section by a manufacturer or
supplier licensed under this part or by a person that holds a
controlling interest in such manufacturer or supplier, or a
subsidiary company thereof, or an officer, a director or a
management-level employee of such a licensee shall be
punishable as follows:
(i) A first violation of this section shall be
punishable by a fine equal to an amount not less than a
single-day average of the gross profit from sales made by
the manufacturer or supplier in this Commonwealth during
the preceding 12-month period or portion thereof in the
event the manufacturer or supplier has not operated in
this Commonwealth for 12 months.
(ii) A second or subsequent violation of this
section within five years of a prior violation shall be
punishable by a one-month suspension of the license held
by the manufacturer or supplier and a fine equal to an
amount not less than two times a single-day average of
the gross profit from sales made by the manufacturer or
supplier in this Commonwealth during the preceding 12-
month period or portion thereof in the event the
manufacturer or supplier has not operated in this
Commonwealth for 12 months.
(3) In no event shall the fine imposed under this
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section be an amount less than $100,000 for each violation.
In addition to a fine or sanction that may be imposed by the
board under this subsection, an individual who makes a
contribution in violation of this section commits a
misdemeanor of the third degree.
(f) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
subsection:
"Contribution." A payment, gift, subscription, assessment,
contract, payment for services, dues, loan, forbearance, advance
or deposit of money or a valuable thing made to a candidate or
political committee for the purpose of influencing an election
in this Commonwealth or for paying debts incurred by or for a
candidate or committee before or after an election. The term
includes:
(1) The purchase of tickets for events, including
dinners, luncheons, rallies and other fundraising events.
(2) The granting of discounts or rebates not available
to the general public.
(3) The granting of discounts or rebates by television
and radio stations and newspapers not extended on an equal
basis to all candidates for the same office.
(4) A payment provided for the benefit of a candidate,
including payment for the services of a person serving as an
agent of a candidate or committee by a person other than the
candidate or committee or person whose expenditures the
candidate or committee must report.
(5) The receipt or use of anything of value by a
political committee from another political committee and a
return on investments by a political committee.
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"Political committee." A committee, club, association or
other group of persons that receives contributions or makes
expenditures.]
Section 32. Title 4 is amended by adding a part to read:
PART IV
SKILL GAMING
Chapter
51. General Provisions
53. Administration
55. Application and Licensure
57. Operation
59. Enforcement
61. Revenues
63. Ethics
65. Miscellaneous Provisions
CHAPTER 51
GENERAL PROVISIONS
Sec.
5101. Scope of part.
5102. Definitions.
§ 5101. Scope of part.
This part relates to skill gaming terminals.
§ 5102. Definitions.
Subject to additional definitions contained in subsequent
provisions of this part which are applicable to specific
provisions of this part, the following words and phrases when
used in this part shall have the meanings given to them in this
section unless the context clearly indicates otherwise:
"Affiliate." A person who directly or indirectly, through
one or more intermediaries, controls, is controlled by or is
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under common control with a specified person.
"Applicant." A person who, on the person's own behalf or on
behalf of another, applies for permission to engage in an act or
activity that is regulated under the provisions of this part.
"Associated equipment." Equipment or a mechanical,
electromechanical or electronic contrivance, component or
machine used in connection with skill gaming terminals or
redemption terminals, including replacement parts, hardware and
software.
"Background investigation." A security, criminal, credit and
suitability investigation of a person as provided for in this
part that includes the status of taxes owed to the Commonwealth
and its political subdivisions.
"Board." The Pennsylvania Gaming Control Board established
under section 1201 (relating to Pennsylvania Gaming Control
Board established).
"Bureau." The Bureau of Investigations and Enforcement of
the board.
"Cash." United States currency and coin.
"Cash equivalent." A ticket, token, chip, card or other
similar instrument or representation of value that the board
deems a cash equivalent in accordance with this part.
"Central control computer." A central site computer
controlled by the department and accessible by the board to
which all skill gaming terminals communicate for the purpose of
auditing capacity, real-time information retrieval of the
details of any financial event that occurs in the operation of a
skill gaming terminal or redemption terminal, including coin in,
coin out, ticket in, ticket out, jackpots, skill gaming terminal
and redemption terminal door openings and power failure and
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remote skill gaming terminal or redemption terminal activation
and disabling of skill gaming terminals or redemption terminals.
"Cheat." Any of the following:
(1) To defraud or steal from a player, terminal operator
licensee, establishment licensee or the Commonwealth while
operating or playing a skill gaming terminal, including
causing, aiding, abetting or conspiring with another person
to do so.
(2) To alter or causing, aiding, abetting or conspiring
with another person to alter the elements of chance, method
of selection or criteria that determine:
(i) The result of a skill gaming terminal game.
(ii) The amount or frequency of payment in a skill
gaming terminal game.
(iii) The value of a wagering instrument.
(iv) The value of a wagering credit.
(3) The term does not include altering a skill gaming
terminal or associated equipment for maintenance or repair
with the approval of a terminal operator licensee and the
board.
"Cheating or thieving device." A device:
(1) used or possessed with the intent to be used to
cheat during the operation or play of a skill gaming
terminal; or
(2) used to alter a skill gaming terminal without the
terminal operator licensee's and the board's approval.
"Coin-operated amusement game." A machine that requires the
insertion of a coin, currency or token to play or activate a
game the outcome of which is predominantly and primarily
determined by the skill of the player and does not pay, award or
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offer a prize in the form of cash or merchandise. The term does
not include a slot machine or hybrid slot machine located at a
licensed facility as defined in Part II (relating to gaming), a
video gaming terminal located at a truck stop establishment as
defined in Part III (relating to video gaming) or a skill gaming
terminal as defined in this part.
"Compensation." Anything of value, money or a financial
benefit conferred on or received by a person in return for
services rendered or to be rendered whether by the person or
another.
"Complimentary service." A lodging, service or item that is
provided to an individual at no cost or at a reduced cost that
is not generally available to the public under similar
circumstances. Group rates, including convention and government
rates, shall be deemed to be generally available to the public.
"Conduct of skill gaming." The licensed placement, operation
and play of skill gaming terminals under this part, as
authorized and approved by the board.
"Controlling interest." Any of the following:
(1) For a publicly traded domestic or foreign
corporation, the term means a person has a controlling
interest in a legal entity, applicant or licensee if a
person's sole voting rights under state law or corporate
articles or bylaws entitle the person to elect or appoint one
or more of the members of the board of directors or other
governing board or the person holds an ownership or
beneficial holding of 5% or more of the securities of the
publicly traded corporation, partnership, limited liability
company or other form of publicly traded legal entity, unless
this presumption of control or ability to elect is rebutted
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by clear and convincing evidence.
(2) For a privately held domestic or foreign
corporation, partnership, limited liability company or other
form of privately held legal entity, the term means the
holding of any securities in the legal entity, unless this
presumption of control is rebutted by clear and convincing
evidence.
"Conviction." A finding of guilt or a plea of guilty or nolo
contendere, whether or not a judgment of sentence has been
imposed as determined by the law of the jurisdiction in which
the prosecution was held. The term does not include a conviction
that has been expunged or overturned or for which an individual
has been pardoned or had an order of Accelerated Rehabilitative
Disposition entered.
"Corporation." Includes a publicly traded corporation.
"County quota." The maximum number of skill gaming
establishment licenses available in each county in this
Commonwealth, which shall be equal to the aggregate number of
licenses issued by the Pennsylvania Liquor Control Board in a
county as of the effective date of this definition, limited to
liquor licenses in either active or safekeeping status, and
limited to the following liquor license categories:
(1) Brewery.
(2) Brewery pub.
(3) Brewery storage.
(4) Hotel (liquor).
(5) Hotel (malt).
(6) Restaurant.
(7) Catering club (liquor).
(8) Club (liquor).
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(9) Club (malt).
(10) Distributor (malt).
(11) Importing distributor (malt).
(12) Eating place retail dispenser (malt).
"Department." The Department of Revenue of the Commonwealth.
"Eligible establishment" or "eligible skill gaming
establishment." A premises that is either:
(1) A licensed premises approved by the Pennsylvania
Liquor Control Board for the sale of liquor, alcohol or malt
or brewed beverages under any of the following license
categories, limited to licenses in either active or
safekeeping status:
(i) Brewery.
(ii) Brewery pub.
(iii) Brewery storage.
(iv) Hotel (liquor).
(v) Hotel (malt).
(vi) Restaurant.
(vii) Catering club (liquor).
(viii) Club (liquor).
(ix) Club (malt).
(x) Distributor (malt).
(xi) Importing distributor (malt).
(xii) Eating place retail dispenser (malt).
(2) A location authorized to sell Pennsylvania Lottery
tickets or shares under the act of August 26, 1971 (P.L.351,
No.91), known as the State Lottery Law.
"Establishment license" or "skill gaming establishment
license." A license issued by the board authorizing an eligible
skill gaming establishment to enter into a terminal placement
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agreement, thus allowing a terminal operator licensee to place
and operate skill gaming terminals on the skill gaming
establishment licensee's premises under this part and
regulations promulgated under this part.
"Establishment licensee" or "skill gaming establishment
licensee." An eligible skill gaming establishment that holds an
establishment license under this part.
"Executive-level public employee." The term shall include
the following:
(1) A deputy secretary of the Commonwealth and the
Governor's Office executive staff.
(2) An employee of the Executive Branch whose duties
substantially involve licensing or enforcement under this
part, who has discretionary power that may affect or
influence the outcome of a Commonwealth agency's action or
decision or who is involved in the development of regulations
or policies relating to a licensed entity. The term includes
an employee with law enforcement authority.
(3) An employee of a county or municipality with
discretionary powers that may affect or influence the outcome
of the county's or municipality's action or decision related
to this part or who is involved in the development of law,
regulation or policy relating to matters regulated under this
part. The term includes an employee with law enforcement
authority.
(4) An employee of a department, agency, board,
commission, authority or other governmental body not included
in paragraph (1), (2) or (3) with discretionary power that
may affect or influence the outcome of the governmental
body's action or decision related to this part or who is
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involved in the development of regulation or policy relating
to matters regulated under this part. The term includes an
employee with law enforcement authority.
"Financial backer." An investor, mortgagee, bondholder,
noteholder or other sources of equity or capital provided to an
applicant or licensed entity.
"Gaming employee." Either of the following:
(1) An employee of a terminal operator licensee or
manufacturer licensee who is not a key employee and who the
board determines is involved in the conduct of skill gaming.
(2) An employee of an establishment licensee whom the
establishment licensee designates as the gaming manager in
accordance with this part.
"Gaming manager." A person designated by an establishment
licensee being:
(1) responsible for the management, supervision and
training of other establishment licensee employees regarding
the conduct of video gaming;
(2) responsible for coordinating video gaming operations
with a terminal operator; and
(3) available to promptly address any gaming-related
issues that arises at the premises of an establishment
licensee.
"Gaming service provider." A person not required to be
licensed as a terminal operator licensee, manufacturer licensee
or establishment licensee and provides goods or services to a
terminal operator licensee that the board determines directly
relates to the operation and security of a skill gaming terminal
or redemption terminal. The term shall not include a person that
supplies goods or services that, at the discretion of the board,
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does not impact the integrity of skill gaming, skill gaming
terminals or the connection of skill gaming terminals to the
central control computer system, including, but not limited to:
(1) Seating to accompany skill gaming terminals.
(2) Structural or cosmetic renovations, improvements or
other alterations to a skill gaming area.
"Gross terminal revenue." The total of cash or cash
equivalents received by a skill gaming terminal minus the total
of cash or cash equivalents paid out to players as a result of
playing a skill gaming terminal. The term does not include
counterfeit cash or cash taken in a fraudulent act perpetrated
against a terminal operator licensee for which the terminal
operator licensee is not reimbursed.
"Holding company." A person, other than an individual,
which, directly or indirectly, owns or has the power or right to
control or to vote a significant part of the outstanding voting
securities of a corporation or other form of business
organization. A holding company indirectly has, holds or owns
such power, right or security if it does so through an interest
in a subsidiary or successive subsidiaries.
"Incentive." Consideration, including a promotion or prize,
provided to a player or potential player as an enticement to
play a skill gaming terminal.
"Inducement."
(1) Any of the following:
(i) Consideration paid directly or indirectly, from
a manufacturer licensee, terminal operator licensee,
procurement agent, gaming employee, employee or another
person on behalf of an applicant or anyone licensed under
this part, to a skill gaming establishment, establishment
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licensee, establishment licensee owner, gaming manager or
an employee of the establishment licensee, directly or
indirectly, as an enticement to solicit or maintain the
establishment licensee or establishment licensee owner's
business.
(ii) Cash, incentive, marketing and advertising
costs, gift, food, beverage, loan, prepayment of gross
terminal revenue and other contribution or payment that
offsets an establishment licensee's operational costs, or
as otherwise determined by the board.
(2) The term does not include costs paid by a terminal
operator applicant or terminal operator licensee related to
making skill gaming terminals operate at the premises of an
establishment licensee, including wiring and rewiring,
software updates, ongoing skill gaming terminal maintenance,
redemption terminals, network connections, site controllers
and costs associated with communicating with the central
control computer system.
"Institutional investor." A retirement fund administered by
a public agency for the exclusive benefit of Federal, State or
local public employees, an investment company registered under
15 U.S.C. Ch. 2D Subch. I (relating to investment companies), a
collective investment trust organized by banks under Part IX of
the Rules of the Comptroller of the Currency, closed-end
investment trust, chartered or licensed life insurance company
or property and casualty insurance company, banking and other
chartered or licensed lending institution, an investment advisor
registered under 15 U.S.C. Ch. 2D Subch. II (relating to
investment advisers) and any other person as the board may
determine consistent with this part.
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"Intermediary." As follows:
(1) a holding company with respect to a corporation or
other form of business organization, that holds or applies
for a license under this part; and
(2) a subsidiary with respect to a holding company.
"Key employee." An individual employed by a manufacturer
licensee or a terminal operator licensee who is determined by
the board to have primary authority to make decisions regarding
the conduct of skill gaming.
"Law enforcement authority." The power to conduct
investigations of or to make arrests for criminal offenses.
"Licensed entity." A terminal operator licensee,
establishment licensee or manufacturer licensee under this part.
"Licensed entity representative." A person, including an
attorney, agent or lobbyist, acting on behalf of or authorized
to represent the interest of an applicant, licensee or other
person authorized by the board to engage in an act or activity
that is regulated under this part regarding a matter before or
that may reasonably be expected to come before the board.
"Licensee." A person licensed under this part.
"Manufacturer license." A license issued by the board
authorizing a person to sell, lease, offer or provide skill
gaming terminals and redemption terminals to a terminal operator
licensee or an applicant for a terminal operator licensee for
use or play in this Commonwealth.
"Manufacturer licensee." A person that holds a manufacturer
license issued by the board under this part.
"Minor." An individual under 21 years of age.
"Net terminal revenue." The net amount of the gross terminal
revenue less the tax and assessments imposed by section 6102
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(relating to taxes and assessments) and the regulatory
assessments established in section 6104 (relating to regulatory
assessments).
"Occupation permit." A permit issued by the board
authorizing an individual to be employed or to work as a gaming
employee.
"Party." The bureau or an applicant, licensee, registrant or
other person appearing of record in any proceeding before the
board.
"Permittee." A holder of a permit issued under this part.
"Person." A natural person, corporation, foundation,
organization, business trust, estate, limited liability company,
trust, partnership, limited liability partnership, association
or other form of legal business entity.
"Player." An individual who inserts cash or cash equivalent
in the play or operation of a skill gaming terminal, the play or
operation of which may deliver or entitle the player to receive
cash or cash equivalent from a terminal operator licensee.
"Principal." An officer, director, person who directly holds
a beneficial interest in or ownership of the securities of an
applicant or anyone licensed under this part, person who has a
controlling interest in an applicant or anyone licensed under
this part or has the ability to elect a majority of the board of
directors of a licensee or to otherwise control anyone licensed
under this part, procurement agent, lender or other licensed
financial institution of an applicant or anyone licensed under
this part, other than a bank or lending institution which makes
a loan or holds a mortgage or other lien acquired in the
ordinary course of business, underwriter of an applicant or
anyone licensed under this part or other person or employee of
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an applicant, terminal operator licensee, manufacturer licensee
deemed to be a principal by the board, including a procurement
agent.
"Procurement agent." A person that shares in the gross
terminal revenue or is otherwise compensated for the purpose of
soliciting or procuring a terminal placement agreement.
"Publicly traded corporation." A person, other than an
individual, that:
(1) has a class or series of securities registered under
15 U.S.C. Ch. 2B (relating to securities exchanges);
(2) is a registered management company under 15 U.S.C.
Ch. 2D Subch. I; or
(3) is subject to the reporting obligations imposed by
15 U.S.C. § 78o-6 (relating to securities analysts and
research reports) by reason of having filed a registration
statement that has become effective under 15 U.S.C. Ch. 2A
(relating to securities and trust indentures).
"Redemption terminal." The collective hardware, software,
communications technology and other ancillary equipment used to
facilitate the payment of cash or cash equivalent to a player as
a result of playing a skill gaming terminal.
"Security." As defined in section 102 of the act of December
5, 1972 (P.L.1280, No.284), known as the Pennsylvania Securities
Act of 1972.
"Skill gaming area." The area of an establishment licensee's
premises where skill gaming terminals and redemption terminals
are installed for operation and play.
"Skill Gaming Fund." The Skill Gaming Fund established in
section 6102 (relating to taxes and assessments).
"Skill gaming terminal." The following:
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(1) A mechanical or electrical contrivance, terminal,
machine or other device approved by the board that, upon
insertion of cash or cash equivalent, is available to play or
operate one or more games, the outcome of which game is
determined predominantly by the skill of the player, rather
than by chance, and offers the player the potential for a
winning result with every play.
(2) The term does not include a slot machine or hybrid
slot machine operated at a licensed facility in accordance
with Part II or a coin-operated amusement game.
(3) The term does not include the lottery as defined
under the State Lottery Law.
(4) The term does not include a video gaming terminal
operated at a truck stop establishment in accordance with
Part III.
(5) The term does not include a website, program,
software or mobile device application that offers the player
the ability to play a game that may award a winning player
cash or cash equivalent.
"Slot machine." As defined in section 1103 (relating to
definitions).
"State Treasurer." The State Treasurer of the Commonwealth.
"Subsidiary." As defined in section 1103.
"Terminal operator." A person that owns, services or
maintains skill gaming terminals for placement and operation on
the premises of an establishment licensee in this Commonwealth
pursuant to this part and the regulations promulgated under this
part.
"Terminal operator license." A license issued by the board
authorizing a terminal operator to place and operate skill
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gaming terminals in an establishment licensee's premises
pursuant to this part and the regulations promulgated under this
part.
"Terminal operator licensee." A person that holds a terminal
operator license issued by the board under this part.
"Terminal placement agreement." The formal written agreement
or contract between an applicant for a terminal operator license
or terminal operator licensee and an applicant for an
establishment license or establishment licensee which specifies
the terms and conditions regarding the conduct of skill gaming
at the premises of an establishment licensee or an applicant for
an establishment license.
CHAPTER 53
ADMINISTRATION
Sec.
5301. Powers of board.
5302. Regulatory authority of board.
5303. Temporary regulations.
5304. Appeals.
5305. Records and confidentiality of information.
5306. Reporting.
5307. (Reserved).
5308. Authority of department.
5309. Central control computer system.
5310. Department of Drug and Alcohol Programs or successor
agency.
§ 5301. Powers of board.
(a) General powers.--
(1) The board shall have general and sole regulatory
authority over the conduct of skill gaming or related
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activities as described in this part. The board shall ensure
the integrity of the acquisition and operation of skill
gaming terminals, redemption terminals and associated
equipment and shall have sole regulatory authority over every
aspect of the conduct of skill gaming.
(2) The board may employ individuals as necessary to
carry out the requirements of this part who shall serve at
the board's pleasure.
(b) Specific powers.--The board shall have the power and
duty:
(1) To require background investigations from applicants
and licensees under the jurisdiction of the board.
(2) At its discretion, to issue, approve, renew, revoke,
suspend, condition or deny issuance or renewal of licenses or
other authorizations that may be required under this part.
(3) At its discretion, to suspend, condition or deny
issuance or renewal of a license under this part or other
authorization or levy a fine or other sanction for a
violation of this part.
(4) To require prospective and licensed gaming employees
to submit to fingerprinting by the Pennsylvania State Police
or its authorized designee. The Pennsylvania State Police or
its authorized designee shall submit the fingerprints to the
Federal Bureau of Investigation for purposes of verifying the
identity of the individual and obtaining records of criminal
arrests and convictions.
(5) To require prospective and licensed gaming employees
to submit photographs consistent with a statement of policy
developed by the board.
(6) To determine the suitability of a person who
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furnishes or seeks to furnish to a terminal operator
licensee, either directly or indirectly, any goods, services
or property related to the conduct of skill gaming.
(7) To approve an application for or issue or renew a
license under this part or other authorization that may be
required by the board, if the board is satisfied the person
has demonstrated by clear and convincing evidence that the
person is of good character, honesty and integrity whose
prior activities, criminal record, if any, reputation, habits
and associations do not pose a threat to the public interest
or the effective regulation and control of skill gaming
operations or create or enhance the danger of unsuitable,
unfair or illegal practices, methods and activities in the
conduct of skill gaming or the carrying on of the business
and financial arrangements incidental thereto.
(8) To publish on the board's publicly accessible
Internet website a complete list of persons or entities who
applied for or held a terminal operator license,
establishment license or manufacturer license at any time
during the preceding calendar year and affiliates,
intermediaries, subsidiaries and holding companies thereof
and the status of the application or license.
(9) To prepare and, through the Governor, submit
annually to the General Assembly an itemized budget
consistent with Article VI of the act of April 9, 1929
(P.L.177, No.175), known as The Administrative Code of 1929,
consisting of the amounts necessary to be appropriated by the
General Assembly out of the accounts established under
section 6104 (relating to regulatory assessments) required to
meet the obligations under this part accruing during the
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fiscal period beginning July 1 of the following year.
(10) To collect and post information on the board's
publicly accessible Internet website with sufficient detail
to inform the public of persons with a controlling interest
or ownership interest in an applicant for a license under
this part or affiliate, intermediary, subsidiary or holding
company of an applicant for a license under this part. The
posting shall include:
(i) If the applicant is a publicly traded domestic
or foreign corporation, partnership, limited liability
company or other legal entity, the names of persons with
a controlling interest.
(ii) If the applicant is a privately held domestic
or foreign corporation, partnership, limited liability
company or other legal entity, the names of all persons
with an ownership interest equal to or greater than 1%.
(iii) The name of a person entitled to cast the vote
of a person named under subparagraph (i) or (ii).
(iv) The names of officers, directors and principals
of the applicant for a license or licensee.
(11) To determine, designate and classify employees of a
licensee as key employees.
(c) Nonlapse.--If appropriations for the administration of
this part are not enacted by June 30 of any year, money
appropriated for the administration of this part which is
unexpended, uncommitted and unencumbered at the end of a fiscal
year shall remain available for expenditure by the board or
other agency to which the money was appropriated until the
enactment of an appropriation for the ensuing fiscal year.
§ 5302. Regulatory authority of board.
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(a) Powers and duties.--The board shall have the power and
duty:
(1) To deny, deny the renewal, revoke, condition or
suspend a license or permit provided for in this part if the
board finds in the board's sole discretion that an applicant,
licensee or permittee under this part or its officers,
employees or agents have furnished false or misleading
information to the board or failed to comply with the
provisions of this part or the rules and regulations of the
board and that it would be in the public interest to deny,
deny the renewal, revoke, condition or suspend the license or
permit.
(2) To restrict access to confidential information in
the possession of the board that has been obtained under this
part and ensure that the confidentiality of information is
maintained and protected.
(3) To prescribe and require periodic financial
reporting and internal control requirements for terminal
operator licensees.
(4) To require that each terminal operator licensee
provide to the board the terminal operator licensee's annual
financial statements, with such additional detail as the
board shall require, which shall be submitted not later than
180 days after the end of the licensee's fiscal year.
(5) To prescribe the procedures to be followed by
terminal operator licensees for a financial event that occurs
in the operation and play of skill gaming terminals.
(6) To require that each establishment licensee
prohibits minors from operating or using skill gaming
terminals or redemption terminals or entering a skill gaming
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area.
(7) To establish procedures for the inspection and
certification of compliance of skill gaming terminals,
redemption terminals and associated equipment prior to being
placed into use on the premises of an establishment licensee
by a terminal operator licensee.
(8) To require that no skill gaming terminal may be set
to pay out less than the theoretical payout percentage, which
percentage shall be no less than 85%, as specifically
approved by the board, with respect to any portion or phase
of a game that the board determines in its sole discretion is
predominantly based on chance. The board shall adopt
regulations that define the theoretical payout percentage for
any predominantly chance-based portion or phase of a game
offered by a skill gaming terminal based on the total value
of the jackpots expected to be paid by a play on a skill
gaming terminal game divided by the total value of the skill
gaming terminal's wagers expected to be made on that play or
skill gaming terminal game during the same portion of the
game cycle.
(9) To require that every game offered by a skill gaming
terminal offers the player the potential for a winning result
with every play, and that the rules of play, including
notification of the potential for a winning result with every
play, are prominently displayed either on the skill gaming
terminal face or screen.
(10) To require that a terminal operator provide on
behalf of an establishment license applicant, detailed site
plans of proposed skill gaming area for review and approval
by the board for the purpose of determining the adequacy of
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the proposed security and surveillance measures as well as
documentation of all costs expended or to be expended by the
terminal operator at the premise of an establishment licensee
to ensure compliance with section 5702(b)(5) (relating to
skill gaming limitations). The applicant shall cooperate with
the board in making changes to the plans suggested by the
board and shall ensure that the plans as modified and
approved are implemented. The board may adopt rules to
establish reasonable placement requirements.
(11) To create rules and promulgate regulations
governing the advertisement of skill gaming terminals,
provided that the board shall require all advertisements to
display or reference the toll-free problem gambling telephone
number maintained by the Department of Drug and Alcohol
Programs or successor agency under section 5310(b) (relating
to Department of Drug and Alcohol Programs or successor
agency).
(12) To enter into contracts with persons for the
purposes of carrying out the powers and duties of the board
under this part.
(13) To adopt regulations governing the postemployment
limitations and restrictions applicable to members and
employees of the board subject to section 6302 (relating to
additional board restrictions). In developing the
regulations, the board may consult with the State Ethics
Commission, governmental agencies and the disciplinary board
of the Supreme Court regarding postemployment limitations and
restrictions on members and employees of the board who are
members of the Pennsylvania Bar.
(14) To review and approve all cash and cash equivalent
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handling policies and procedures employed by terminal
operator licensees.
(15) To promulgate regulations governing the placement
of automated teller machines within or adjacent to skill
gaming areas.
(16) To establish mandatory age-verification training
and procedures for establishment licensees and their
employees to ensure that minors do not utilize or access a
skill gaming area, skill gaming terminal or redemption
terminal.
(17) To establish mandatory online problem gambling
training to be completed by all employees of licensed
entities under this part.
(18) To determine in the board's sole discretion whether
a game, portion of a game or software meets the definition of
"skill gaming terminal" under section 5102 (relating to
definitions).
(19) To coordinate with the Bureau of Liquor Control
Enforcement of the Pennsylvania State Police to establish a
county quota for skill gaming establishment licenses for each
county in this Commonwealth, which shall be calculated as the
aggregate number of licenses issued by the Pennsylvania
Liquor Control Board in the following license categories for
each respective county as of the effective date, limited to
those licenses that are in either active or safekeeping
status:
(i) Brewery.
(ii) Brewery pub.
(iii) Brewery storage.
(iv) Hotel (liquor).
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(v) Hotel (malt).
(vi) Restaurant.
(vii) Catering club (liquor).
(viii) Club (liquor).
(ix) Club (malt).
(x) Distributor (malt).
(xi) Importing distributor (malt).
(xii) Eating place retail dispenser (malt).
(20) To prohibit the transfer of any skill gaming
establishment license to a location other than the location
for which the license was issued.
(21) To prohibit the issuance of any skill gaming
establishment license that would result in the applicable
county quota being exceeded.
(22) To establish procedures for an establishment
license that is revoked, suspended or surrendered, which
shall provide for reissuance of the establishment license to
an eligible establishment in the county where the license was
originally issued.
(23) To create rules and promulgate regulations
necessary for the administration and enforcement of this
part.
(b) Applicable law.--Except as provided in section 5303
(relating to temporary regulations), regulations shall be
adopted in accordance with the act of July 31, 1968 (P.L.769,
No.240), referred to as the Commonwealth Documents Law, and the
act of June 25, 1982 (P.L.633, No.181), known as the Regulatory
Review Act.
§ 5303. Temporary regulations.
(a) Promulgation.--In order to facilitate the prompt
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implementation of this part, regulations promulgated by the
board shall be deemed temporary regulations which shall expire
no later than two years following the publication of the
temporary regulations. The board may promulgate temporary
regulations not subject to:
(1) Section 612 of the act of April 9, 1929 (P.L.177,
No.175), known as The Administrative Code of 1929.
(2) Sections 201, 202, 203, 204 and 205 of the act of
July 31, 1968 (P.L.769, No.240), referred to as the
Commonwealth Documents Law.
(3) Section 204(b) of the act of October 15, 1980
(P.L.950, No.164), known as the Commonwealth Attorneys Act.
(4) The act of June 25, 1982 (P.L.633, No.181), known as
the Regulatory Review Act.
(b) Publication.--The board shall transmit the temporary
regulations promulgated under this section to the Legislative
Reference Bureau for publication in the next available issue of
the Pennsylvania Bulletin.
(c) Expiration.--Except for temporary regulations related to
security and surveillance and standards for terminal placement
agreements, the authority provided to the board to adopt
temporary regulations in subsection (a) shall expire two years
following the publication of the temporary regulations.
Regulations adopted after that date shall be promulgated as
provided by law.
§ 5304. Appeals.
An applicant, licensee or permittee may appeal a final order,
determination or decision of the board involving the approval,
issuance, denial, revocation, nonrenewal, suspension or
conditioning, including any disciplinary actions, of a license,
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permit or authorization under this part in accordance with 2
Pa.C.S. Chs. 5 Subch. A (relating to practice and procedure of
Commonwealth agencies) and 7 Subch. A (relating to judicial
review of Commonwealth agency action).
§ 5305. Records and confidentiality of information.
(a) Records.--The board shall maintain files and records
deemed necessary for the administration and enforcement of this
part.
(b) Confidentiality of information.--
(1) The following information submitted by an applicant,
licensee or permittee under Chapter 55 (relating to
application and licensure) or obtained by the board or the
bureau as part of a background or other investigation from
any source shall be confidential and withheld from public
disclosure:
(i) Information relating to character, honesty and
integrity, including family, habits, reputation, history
of criminal activity, business activities, financial
affairs and business, professional and personal
associations submitted to or otherwise obtained by the
board or the bureau.
(ii) Nonpublic personal information, including home
addresses, telephone numbers and other personal contact
information, Social Security numbers, educational
records, memberships, medical records, tax returns and
declarations, actual or proposed compensation, financial
account records, creditworthiness or financial condition
relating to an applicant, licensee or permittee or the
immediate family thereof.
(iii) Information relating to proprietary
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information, trade secrets, patents or exclusive
licenses, architectural and engineering plans and
information relating to competitive marketing materials
and strategies, including customer-identifying
information or customer prospects for services subject to
competition.
(iv) Security information, including risk prevention
plans, detection and countermeasures, emergency
management plans, security and surveillance plans,
equipment and usage protocols and theft and fraud
prevention plans and countermeasures.
(v) Information with respect to which there is a
reasonable possibility that public release or inspection
of the information would constitute an unwarranted
invasion into personal privacy of an individual as
determined by the board.
(vi) Records of an applicant, licensee or permittee
not required to be filed with the securities and exchange
commission by issuers that either have securities
registered under 15 U.S.C. § 78l (relating to
registration requirements for securities) or are required
to file reports under 15 U.S.C. § 78o (relating to
registration and regulation of brokers and dealers).
(vii) Records considered nonpublic matters or
information by the Securities and Exchange Commission as
provided by 17 CFR 200.80 (relating to Securities and
Exchange Commission records and information).
(viii) Financial information provided to the board
by an applicant, licensee or permittee.
(2) No claim of confidentiality may be made regarding
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criminal history record information that is available to the
public under 18 Pa.C.S. § 9121(b) (relating to general
regulations).
(3) Except as provided in paragraph (1), no claim of
confidentiality may be made regarding a record in possession
of the board that is otherwise publicly available from the
board under the act of February 14, 2008 (P.L.6, No.3), known
as the Right-to-Know Law.
(4) Except as provided in section 5904(h) (relating to
investigations and enforcement), the information made
confidential under this section shall be withheld from public
disclosure in whole or in part, except that confidential
information shall be released upon the order of a court of
competent jurisdiction or, with the approval of the attorney
general, to a duly authorized law enforcement agency or shall
be released to the public, in whole or in part, to the extent
that the release is requested by an applicant, licensee or
permittee and does not otherwise contain confidential
information about another person.
(5) The board may seek a voluntary waiver of
confidentiality from an applicant, licensee or permittee but
may not require an applicant, licensee or permittee to waive
the confidentiality provided under this subsection as a
condition for the approval of an application, renewal of a
license or other action of the board.
(6) (i) No current or former member and no current or
former employee, agent or independent contractor of the
board, the department, the Pennsylvania State Police, the
Office of Attorney General or other Executive Branch
office who has obtained confidential information in the
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performance of duties under this part shall intentionally
disclose the information to a person, knowing that the
information being disclosed is confidential under this
subsection, unless the person is authorized by law to
receive the information.
(ii) A violation of this subsection shall constitute
a misdemeanor of the third degree.
(iii) In addition to any penalty under subparagraph
(ii), an employee, agent or independent contractor who
violates this subsection shall be administratively
disciplined by discharge, suspension, termination of
contract or other formal disciplinary action as
appropriate. If a current member violates this paragraph,
the other members shall refer the matter to the current
member's appointing authority.
(c) Notice.--Notice of the contents of information, except
to a duly authorized law enforcement agency pursuant to this
section, shall be given to an applicant or licensee in a manner
prescribed by the regulations adopted by the board.
(d) Information held by other agencies.--Files, records,
reports and other information in the possession of the
department pertaining to an applicant, licensee or permittee
shall be made available to the board as may be necessary to the
effective administration of this part.
§ 5306. Reporting.
(a) Report by board.--Beginning October 1, 2027, and every
year thereafter, the annual report submitted to the Governor and
the General Assembly by the board under section 1211 (relating
to reports of board) shall include information on the conduct of
skill gaming for the previous calendar year:
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(1) Total gross skill gaming terminal revenue.
(2) Total number of terminal operator licensees,
manufacturer licensees and establishment licensees.
(3) All taxes, fees, fines and other revenue collected
and, where appropriate, revenue disbursed. The department
shall collaborate with the board to carry out the
requirements of this paragraph.
(4) Other information related to the conduct of skill
gaming that the board deems appropriate.
(b) Participation.--The board may require licensees to
provide information to the board to assist in the preparation of
the report under subsection (a).
§ 5307. (Reserved).
§ 5308. Authority of department.
(a) Duties.--The department shall administer and collect
taxes imposed under this part and interest imposed under section
806 of the act of April 9, 1929 (P.L.343, No.176), known as The
Fiscal Code, and promulgate and enforce regulations to carry out
its prescribed duties in accordance with this part, including
the collection of taxes, penalties and interest imposed by this
part.
(b) Application of regulations.--The department may
prescribe the extent, if any, to which any regulations shall be
applied without retroactive effect. The department shall
prescribe the forms and the system of accounting and
recordkeeping to be employed and through its representative
shall at all times have power of access to and examination and
audit of any equipment and records relating to all aspects of
the operation of skill gaming terminals and redemption terminals
under this part.
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(c) Procedure.--For purposes of implementing this part, the
department may promulgate regulations in the same manner in
which the board is authorized as provided in section 5303
(relating to temporary regulations).
(d) Additional penalty.--A person who fails to timely remit
to the department or the State Treasurer amounts required under
this part shall be liable, in addition to liability imposed
elsewhere in this part, to a penalty of 5% per month up to a
maximum of 25% of the amounts ultimately found to be due, to be
recovered by the department.
(e) Liens and suits for taxes.--The provisions of this part
shall be subject to the provisions of sections 242 and 243 of
the act of March 4, 1971 (P.L.6, No.2), known as the Tax Reform
Code of 1971.
§ 5309. Central control computer system.
(a) Terminal requirements.--To facilitate the auditing and
security programs critical to the integrity of skill gaming
terminals in this Commonwealth, the department shall require
that skill gaming terminals and redemption terminals meet the
following:
(1) Terminals shall be linked, at an appropriate time to
be determined by the department, to a central control
computer under the control of the department and accessible
by the board to provide auditing program capacity and
individual terminal information as approved by the
department.
(2) Terminals shall include real-time information
retrieval and terminal activation and disabling programs.
(b) System requirements.--The central control computer
employed by the department shall provide:
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(1) A fully operational Statewide skill gaming terminal
control system that has the capability of supporting up to
the maximum number of skill gaming terminals authorized under
this part.
(2) The employment of a widely accepted gaming industry
protocol to facilitate a skill gaming terminal's ability to
communicate with the Statewide system.
(3) The delivery of a system that has the ability to
verify software, detect alterations in payout and detect
other methods of fraud in all aspects of the operation of
skill gaming terminals.
(4) The delivery of a system that does not alter the
statistical awards of skill gaming terminal games as designed
by the manufacturer licensee and approved by the board.
(5) The delivery of a system that provides redundancy so
that each component of the network is capable of operating
independently if any component of the network, including the
central control computer, fails or cannot be operated for any
reason as determined by the department, and to assure that
all transactional data is captured and secured. Costs
associated with a computer system required by the department
to operate within a skill gaming area, whether independent or
as part of the central control computer, shall be paid by the
terminal operator licensee. The computer system shall be
controlled by the department and accessible to the board.
(6) The ability to meet all reporting and control
requirements as prescribed by the board and department.
(7) The delivery of a system that provides centralized
issuance of cash redemption tickets and facilitates the
acceptance of the tickets by skill gaming terminals and
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redemption terminals.
(8) Other capabilities as determined by the department
in consultation with the board.
(c) Personal information.--The central control computer may
not provide for the monitoring or reading of personal or
financial information concerning a player of a terminal operator
licensee.
(d) Initial acquisition of central control computer.--
(1) In order to facilitate the prompt implementation of
this part, initial contracts entered into by the department
for a central control computer, including necessary computer
hardware, software, licenses or related services, shall not
be subject to the provisions of 62 Pa.C.S. (relating to
procurement).
(2) Contracts made pursuant to the provisions of this
section may not exceed five years.
(e) Resolution of contract disputes.--The process specified
in 62 Pa.C.S. Ch. 17 Subch. B (relating to prelitigation
resolution of controversies) shall be the sole means of
resolution for controversies arising with respect to contracts
executed under this section.
(f) Existing central control computer system.--The
department, in its discretion, may alter or utilize the central
control computer system controlled by the department under
section 1323 (relating to central control computer system) to
fulfill the requirements of this section.
§ 5310. Department of Drug and Alcohol Programs or successor
agency.
(a) Program update.--
(1) The Department of Drug and Alcohol Programs or a
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successor agency shall update the compulsive and problem
gambling program established in section 1509 (relating to
compulsive and problem gambling program) to address public
education, awareness and training regarding compulsive and
problem gambling and the treatment and prevention of
compulsive and problem gambling related to skill gaming
terminals.
(2) The updated guidelines shall include strategies for
the prevention of compulsive and problem gambling related to
skill gaming terminals.
(3) The Department of Drug and Alcohol Programs or a
successor agency may consult with the board and terminal
operator licensees to develop the strategies.
(b) Duties of Department of Drug and Alcohol Programs or
successor agency.--From money available in the Compulsive and
Problem Gambling Treatment Fund, the Department of Drug and
Alcohol Programs or a successor agency shall with respect to
skill gaming terminals:
(1) Maintain one compulsive gambler's assistance
organization's toll-free problem gambling telephone number,
which number shall be 1-800-GAMBLER, to provide crisis
counseling and referral services to individuals and families
experiencing difficulty as a result of problem or compulsive
gambling.
(2) Maintain one compulsive gambler's assistance
organization's telephone number, which shall be accessible
via a free text message service, to provide crisis counseling
and referral services to individuals and families
experiencing difficulty as a result of problem or compulsive
gambling.
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(3) Facilitate, through in-service training and other
means, the availability of effective assistance programs for
problem and compulsive gamblers and family members affected
by problem and compulsive gambling.
(4) At its discretion, conduct studies to identify
individuals in this Commonwealth who are or are at risk of
becoming problem or compulsive gamblers.
(5) Provide grants to and contract with single county
authorities and other organizations that provide services
specified in this section.
(6) Reimburse organizations for reasonable expenses
incurred assisting the Department of Drug and Alcohol
Programs or successor agency with implementing this section.
(7) Maintain a comprehensive list of all self-excluded
individuals under section 1516 (relating to list of persons
self excluded from gaming activities), 3903 (relating to
self-exclusion) or 5903 (relating to self-exclusion).
(c) Additional duties.--Within 60 days following the
effective date of this subsection, the Department of Drug and
Alcohol Programs or a successor agency and the board's Office of
Compulsive and Problem Gambling shall jointly collaborate with
other appropriate offices and agencies of State or local
government, including single county authorities and providers
and other persons, public or private, with expertise in
compulsive and problem gambling treatment with respect to skill
gaming terminals to:
(1) Implement a strategic plan for the prevention and
treatment of compulsive and problem gambling.
(2) Adopt compulsive and problem gambling treatment
standards to be integrated with the Department of Drug and
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Alcohol Programs' or a successor agency's uniform Statewide
guidelines that govern the provision of addiction treatment
services.
(3) Develop a method to coordinate compulsive and
problem gambling data collection and referral information to
crisis response hotlines, child welfare and domestic violence
programs and providers and other appropriate programs and
providers.
(4) Develop and disseminate educational materials to
provide public awareness related to the prevention,
recognition and treatment of compulsive and problem gambling.
(5) Develop demographic-specific compulsive and problem
gambling prevention, intervention and treatment programs.
(6) Prepare an itemized budget outlining how money will
be allocated to fulfill the responsibilities under this
section.
(d) Report.--The Department of Drug and Alcohol Programs or
a successor agency shall include in the report required under
section 1509 information involving skill gaming terminals.
CHAPTER 55
APPLICATION AND LICENSURE
Sec.
5501. General prohibition.
5502. Terminal operator licenses.
5503. (Reserved).
5504. Principal licenses.
5505. Key employee licenses.
5506. Divestiture of disqualifying applicant.
5507. (Reserved).
5508. Manufacturer licenses.
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5509. Gaming service provider.
5510. Occupation permit.
5511. Alternative terminal operator licensing standards.
5512. Alternative manufacturer licensing standards.
5513. (Reserved).
5514. Establishment licenses.
5515. License or permit prohibition.
5516. Issuance and renewal.
5517. Change in ownership or control of terminal operator
licensee.
5518. Skill gaming accounting controls and audits.
5519. Multiple licenses prohibited.
§ 5501. General prohibition.
Within 10 months after the effective date of this section, a
person who offers or otherwise makes available for play in this
Commonwealth any game that involves any element of chance,
regardless of the extent to which the outcome of play is
determined by elements of chance or by the skill of the player,
and such game is not licensed and regulated by the board or
expressly authorized by the laws of this Commonwealth, such
person commits a crime in violation of 18 Pa.C.S. § 5513
(relating to gambling devices, gambling, etc.) and is subject to
the penalties therein, as well as the penalties specified in
section 5905 (relating to prohibited acts and penalties).
§ 5502. Terminal operator licenses.
(a) General requirements.--An application for a terminal
operator license shall be on the form developed and required by
the board and shall include, at a minimum, all of the following:
(1) The name, address and photograph of the applicant
and of all directors and owners and key employees and their
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positions within the corporation or organization, as well as
additional financial information required by the board.
(2) A current tax lien certificate issued by the
department.
(3) The details of any gaming license applied for,
granted to or denied to the applicant by another jurisdiction
where the form of gaming is legal and the consent for the
board to acquire copies of the application submitted or
license issued in connection with the application.
(4) The details of any loan obtained from a financial
institution or not obtained from a financial institution.
(5) The consent to conduct a background investigation by
the board, the scope of which investigation shall be
determined by the bureau in its discretion consistent with
this part and a release signed by all persons subject to the
investigation of all information required to complete the
investigation.
(6) The details of the applicant's diversity plan to
ensure that all persons are accorded equality of opportunity
in employment and contracting by the applicant, its
contractors, subcontractors, assignees, lessees, agents,
vendors and suppliers.
(7) Any information concerning maintenance and operation
of skill gaming terminals in any other jurisdiction.
(8) Proof that the applicant has or will establish a
place of business in this Commonwealth. A terminal operator
licensee shall maintain its place of business in this
Commonwealth to remain eligible for licensure.
(9) Any other information determined to be appropriate
by the board.
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(b) Character requirements.--An application for a terminal
operator license shall include such information, documentation
and assurances as may be required to establish by clear and
convincing evidence of the applicant's suitability, including
good character, honesty and integrity. The application shall
include, without limitation, information pertaining to family,
habits, character, reputation, criminal history background,
business activities, financial affairs and business,
professional and personal associates, covering at least the 10-
year period immediately preceding the filing date of the
application.
(c) Civil judgments.--An applicant shall notify the board of
any civil judgment obtained against the applicant pertaining to
laws of the Federal Government, this Commonwealth or another
state, jurisdiction, province or country.
(d) (Reserved).
(e) (Reserved).
(f) Additional eligibility requirements.--In order to be
eligible for a terminal operator license under this part, the
principals and key employees of the applicant must obtain a
license to meet the character requirements of this section or
other eligibility requirements established by the board.
(g) Classification system.--The board shall develop a
classification system for other agents, employees or persons who
directly or indirectly hold or are deemed to be holding debt or
equity securities or other financial interest in the applicant
and for other persons that the board considers appropriate for
review under this section.
(h) Related entities.--
(1) Except as provided in paragraph (2), a person may
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not be eligible to receive a terminal operator license unless
the principals and key employees of each intermediary or
holding company of the person meet the requirements of
subsection (f).
(2) The board may require that lenders and underwriters
of intermediaries, subsidiaries or holding companies of a
terminal operator license applicant meet the requirements of
subsection (f) if the board determines that the suitability
of a lender or underwriter is at issue and necessary to
consider a pending application for a terminal operator
license.
(i) Revocable privilege.--The issuance or renewal of a
license or other authorization by the board under this section
shall be a revocable privilege.
(j) Waiver for publicly traded corporations.--The board may
waive the requirements of subsection (f) for a person directly
or indirectly holding ownership of securities in a publicly
traded corporation if the board determines that the holder of
the securities does not have the ability to control the
corporation or elect one or more directors thereof.
(k) (Reserved).
(l) Ongoing duty.--A person applying for a license or other
authorization under this part shall continue to provide
information required by the board or the bureau and cooperate in
any inquiry or investigation.
(m) Criminal history record check.--The board may conduct a
criminal history record check on a person for whom a waiver is
granted under this section.
(n) Applicant financial information.--
(1) The board shall require an applicant for a terminal
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operator license to produce the information, documentation
and assurances concerning financial background and resources
as the board deems necessary to establish by clear and
convincing evidence the financial stability, integrity and
responsibility of the applicant, its affiliate, intermediary,
subsidiary or holding company, including bank references,
business and personal income and disbursement schedules, tax
returns and other reports filed with governmental agencies
and business and personal accounting and check records and
ledgers.
(2) An applicant shall in writing authorize the
examination of all bank accounts and records as may be deemed
necessary by the board.
(o) Financial backer information.--
(1) The board shall require an applicant for a terminal
operator license to produce the information, documentation
and assurances as may be necessary to establish by clear and
convincing evidence the integrity of all financial backers,
institutional investors, investors, mortgagees, bondholders
and holders of indentures, notes or other evidences of
indebtedness, either in effect or proposed.
(2) The board may waive the qualification requirements
for banking or lending institutions and institutional
investors.
(3) A banking or lending institution or institutional
investor shall produce for the board upon request any
document or information that bears relation to the proposal
submitted by the applicant or applicants.
(4) The integrity of the financial sources shall be
judged upon the same standards as the applicant. Any such
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person or entity shall produce for the board upon request any
document or information which bears any relation to the
application.
(5) The applicant shall produce whatever information,
documentation or assurances the board requires to establish
by clear and convincing evidence the adequacy of financial
resources.
(p) Applicant's business experience.--
(1) The board shall require an applicant for a terminal
operator license to produce the information, documentation
and assurances as the board may require to establish by clear
and convincing evidence that the applicant has sufficient
business ability and experience to create and maintain a
successful, efficient operation.
(2) An applicant shall produce the names of all proposed
key employees and a description of the proposed key
employees' respective or proposed responsibilities as they
become known.
(q) Additional information.--In addition to other
information required by this part, a person applying for a
terminal operator license shall provide the following
information:
(1) The organization, financial structure and nature of
all businesses operated by the person, including any
affiliate, intermediary, subsidiary or holding companies, the
names and personal employment and criminal histories of all
officers, directors and key employees of the corporation; the
names of all holding, intermediary, affiliate and subsidiary
companies of the corporation; and the organization, financial
structure and nature of all businesses operated by such
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holding, intermediary and subsidiary companies as the board
may require, including names and personal employment and
criminal histories of such officers, directors and principal
employees of such corporations and companies as the board may
require.
(2) The extent of securities held in the corporation by
all officers, directors and underwriters and their
remuneration in the form of salary, wages, fees or otherwise.
(3) Copies of all management and service contracts.
(r) Review and approval.--Upon being satisfied that the
requirements of subsections (a), (b), (c), (f), (g), (h), (i),
(j), (l), (m), (n), (o), (p) and (q) have been met, the board
may approve the application and issue the applicant a terminal
operator license consistent with all of the following:
(1) (i) The license shall be valid for a period of five
years.
(ii) Nothing in this paragraph shall be construed to
relieve a licensee of the affirmative duty to notify the
board of any changes relating to the status of its
license or to any information contained in the
application materials on file with the board.
(2) The license shall be nontransferable.
(3) Any other condition established by the board.
(s) Renewal.--
(1) At least six months prior to expiration of a
terminal operator license, the terminal operator licensee
seeking renewal of its license shall submit a renewal
application to the board.
(2) If the renewal application satisfies the
requirements of subsections (a), (b), (c), (f), (g), (h),
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(i), (j), (l), (m), (n), (o), (p) and (q), the board may
renew the licensee's terminal operator license.
(3) If the board receives a complete renewal application
but fails to act upon the renewal application prior to the
expiration of the terminal operator license, the terminal
operator license shall continue in effect until acted upon by
the board.
§ 5503. (Reserved).
§ 5504. Principal licenses.
(a) License required.--All principals shall obtain a
principal license from the board.
(b) Application.--A principal license application shall be
in a form prescribed by the board and shall include the
following:
(1) Verification of status as a principal from a
terminal operator licensee or manufacturer licensee.
(2) A description of responsibilities as a principal.
(3) All releases necessary to obtain information from
governmental agencies, employers and other organizations.
(4) Details relating to a similar license, permit or
other authorization obtained in another jurisdiction.
(5) Additional information required by the board.
(c) Issuance.--Following review of the application and the
background investigation, the board may issue a principal
license if the applicant has proven by clear and convincing
evidence that the applicant is a person of good character,
honesty and integrity and is eligible and suitable to be
licensed as a principal.
(d) Nontransferability.--A license issued under this section
shall be nontransferable.
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(e) Principals.--An individual who receives a principal
license need not obtain a key employee license.
§ 5505. Key employee licenses.
(a) License required.--A key employee, including a gaming
manager and a procurement agent, shall obtain a key employee
license from the board, regardless of whether employed by a
licensee or serving as an independent contractor to the
licensee.
(b) Application.--A key employee license application shall
be in a form prescribed by the board and shall include the
following:
(1) Verification of status as a key employee from a
terminal operator licensee, establishment licensee or
manufacturer licensee.
(2) A description of employment responsibilities.
(3) All releases necessary to obtain information from
governmental agencies, employers and other organizations.
(4) Details relating to a similar license or other
authorization obtained in another jurisdiction.
(5) Additional information required by the board.
(c) Issuance.--Following review of the application and the
background investigation, the board may issue a key employee
license if the applicant has proven by clear and convincing
evidence that the applicant is a person of good character,
honesty and integrity and is eligible and suitable to be
licensed as a key employee.
(d) Nontransferability.--A license issued under this section
shall be nontransferable.
§ 5506. Divestiture of disqualifying applicant.
(a) Board power to require.--
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(1) In the event that an establishment license
application, terminal operator license application or
manufacturer license application is not approved by the board
based on a finding that an individual who is a principal or
has an interest in the person applying for the license does
not meet the character requirements of this part or any of
the eligibility requirements under this part or a person who
purchases a controlling interest in the applicant in
violation of section 5517 (relating to change in ownership or
control of terminal operator licensee), the board may afford
the individual the opportunity to completely divest the
individual's interest in the person, its affiliate,
intermediary, subsidiary or holding company seeking the
license and, after divestiture, reconsider the person's or
applicant's suitability for licensure in an expedited
proceeding and may, after the proceeding, issue the person or
applicant a terminal operator license.
(2) The board shall approve the terms and conditions of
any divestiture under this section.
(b) Limitation.--Under no circumstances shall any
divestiture be approved by the board if the compensation for the
divested interest exceeds the cost of the interest.
§ 5507. (Reserved).
§ 5508. Manufacturer licenses.
(a) Application.--A person seeking to manufacture skill
gaming terminals, redemption terminals and associated equipment
for use in this Commonwealth must apply to the board for a
manufacturer license.
(b) Requirements.--An application for a manufacturer license
shall be on a form required by the board and shall include all
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of the following:
(1) The name and business address of the applicant and
the applicant's affiliates, intermediaries, subsidiaries and
holding companies; the principals and key employees of each
business; and a list of employees and their positions within
each business, as well as financial information required by
the board.
(2) A statement that the applicant and each affiliate,
intermediary, subsidiary or holding company of the applicant
are not terminal operator licensees.
(3) The consent to a background investigation by the
bureau of the applicant, its principals, its key employees,
its intermediaries, its subsidiaries or other persons
required by the board and a release to obtain the information
necessary for the completion of the background investigation.
(4) The details of any equivalent license granted or
denied by other jurisdictions where gaming activities as
authorized by this part are permitted.
(5) The details of any manufacturer license issued by
the board to the applicant under section 1317.1 (relating to
manufacturer licenses) or 3508 (relating to manufacturer
licenses), if applicable.
(6) The type of skill gaming terminals, redemption
terminals or associated equipment to be manufactured or
repaired.
(7) Other information determined by the board to be
appropriate.
(c) Review and approval.--Upon being satisfied that the
requirements of subsection (b) have been met, the board may
approve the application and grant the applicant a manufacturer
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license consistent with all of the following:
(1) (i) The license shall be valid for a period of five
years.
(ii) Nothing in this paragraph shall be construed to
relieve the licensee of the affirmative duty to notify
the board of a change relating to the status of its
license or to other information contained in application
materials on file with the board.
(2) The license shall be nontransferable.
(3) Other conditions established by the board.
(d) Renewal.--
(1) At least six months prior to expiration of a
manufacturer license, the manufacturer licensee seeking
renewal of its license shall submit a renewal application
accompanied by the renewal fee to the board.
(2) If the renewal application satisfies the
requirements of subsection (b), the board may renew the
licensee's manufacturer license.
(3) If the board receives a complete renewal application
but fails to act upon the renewal application prior to the
expiration of the manufacturer license, the manufacturer
license shall continue in effect until acted upon by the
board.
(e) Authority.--A manufacturer licensee or its designee, as
licensed by the board under this part, may supply or repair a
skill gaming terminal, redemption terminal or associated
equipment manufactured by the manufacturer licensee.
(f) Prohibitions.--
(1) No person may manufacture skill gaming terminals,
redemption terminals or associated equipment for sale, lease
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or use within this Commonwealth unless the person has been
issued a manufacturer license under this part.
(2) No person issued a manufacturer license under this
section may apply for or be issued a terminal operator
license under section 5502 (relating to terminal operator
licenses) or establishment license under section 5514
(relating to establishment licenses).
§ 5509. Gaming service provider.
(a) Development of classification system.--The board shall
develop a classification system governing the certification,
registration and regulation of gaming service providers and
individuals and entities associated with them. The
classification system shall be based upon the following:
(1) Whether the employees of the gaming service provider
will have access to the skill gaming area or skill gaming
terminals or redemption terminals prior to or after
installation.
(2) Whether the goods or services provided or to be
provided by the gaming service provider would impact the
integrity of the conduct of skill gaming.
(b) Authority to exempt.--The board may exempt a person or
type of business from the requirements of this section if the
board determines:
(1) the person or type of business is regulated by an
agency of the Federal Government, an agency of the
Commonwealth or the Pennsylvania Supreme Court; or
(2) the regulation of the person or type of business is
determined not to be necessary in order to protect the public
interest or the integrity of gaming.
(c) Duties of gaming service providers.--A gaming service
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provider shall have a continuing duty to:
(1) Provide all information, documentation and
assurances as the board may require.
(2) Cooperate with the board in investigations, hearings
and enforcement and disciplinary actions.
(3) Comply with all conditions, restrictions,
requirements, orders and rulings of the board in accordance
with this part.
(4) Report a change in circumstances that may render the
gaming service provider ineligible, unqualified or unsuitable
for continued registration or certification.
(d) Requirement for permit.--The board may require employees
of a gaming service provider to obtain a permit or other
authorization if, after an analysis of duties, responsibilities
and functions, the board determines that a permit or other
authorization is necessary to protect the integrity of gaming.
(e) Interim authorization.--The board or a designated
employee of the board may permit a gaming service provider
applicant to engage in business with an applicant for a terminal
operator license or a terminal operator licensee prior to
approval of the gaming service provider application if the
following criteria have been satisfied:
(1) A completed application has been filed with the
board by the gaming service provider.
(2) The terminal operator license applicant or terminal
operator licensee contracting or doing business with the
gaming service provider certifies that it has performed due
diligence on the gaming service provider and believes that
the applicant meets the qualification to be a gaming service
provider under this section.
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(3) The gaming service provider applicant agrees in
writing that the grant of interim authorization to conduct
business prior to board approval of the application does not
create a right to continue to engage in business if the board
determines that the applicant is not suitable or continued
authorization is not in the public interest.
(f) Construction.--Nothing in this section shall be
construed to prohibit the board from rescinding a grant of
interim authorization if, at any time, the suitability of the
person subject to interim authorization is at issue or if the
person fails to cooperate with the board or the bureau or an
agent of the board or bureau.
(g) Gaming service provider lists.--
(1) The board shall:
(i) Develop and maintain a list of approved gaming
service providers who are authorized to provide goods or
services whether under a grant of interim or continued
authorization.
(ii) Develop and maintain a list of prohibited
gaming service providers.
(2) An applicant for a terminal operator license or a
terminal operator licensee may not enter into an agreement or
engage in business with a gaming service provider listed on
the prohibited gaming service provider list.
(h) Emergency authorization.--
(1) A terminal operator licensee may utilize a gaming
service provider that has not been approved by the board when
a threat to public health, welfare or safety exists or
circumstances outside the control of the terminal operator
licensee require immediate action to mitigate damage or loss
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to the licensee's skill gaming terminals.
(2) The board shall promulgate regulations to govern the
use of gaming service providers under emergency
circumstances. The regulations shall include a requirement
that the terminal operator licensee contact the board
immediately upon utilizing a gaming service provider that has
not been approved by the board.
(i) Criminal history record information.--If the
classification system developed by the board in accordance with
subsection (a) requires a gaming service provider or an
individual or entity associated with the gaming service provider
to submit to or provide the bureau with criminal history record
information under 18 Pa.C.S. Ch. 91 (relating to criminal
history record information), the bureau shall notify a terminal
operator licensee that submitted a certification under
subsection (e)(2) whether the applicant has been convicted of a
felony or misdemeanor gambling offense.
§ 5510. Occupation permit.
(a) Application.--
(1) An individual who desires to be a gaming employee
and has a bona fide offer of employment from a terminal
operator licensee or establishment licensee shall apply to
the board for an occupation permit.
(2) An individual may not be employed as a gaming
employee unless and until that individual holds an
appropriate occupation permit issued under this section.
(3) The board may promulgate regulations to reclassify a
category of nongaming employees or gaming employees upon a
finding that the reclassification is in the public interest
and consistent with the objectives of this part.
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(b) Requirements.--The application for an occupation permit
shall include, at a minimum:
(1) The name and home address of the individual.
(2) The previous employment history of the individual.
(3) The criminal history record of the individual, as
well as the individual's consent for the bureau to conduct a
background investigation.
(4) A photograph of the individual.
(5) Evidence of the offer of employment and the nature
and scope of the proposed duties of the individual, if known.
(6) The details of an occupation permit or similar
license granted or denied to the individual in other
jurisdictions.
(7) Other information determined by the board to be
appropriate.
(c) Prohibition.--A terminal operator licensee may not
employ or permit an individual under 18 years of age to render
service in a skill gaming area.
§ 5511. Alternative terminal operator licensing standards.
(a) Determination.--
(1) The board may determine whether the licensing
standards of another jurisdiction within the United States in
which an applicant, its affiliate, intermediary, subsidiary
or holding company for a terminal operator license is
similarly licensed are comprehensive and thorough and provide
similar adequate safeguards as those required by this part.
(2) If the board makes that determination, the board may
issue a terminal operator license to an applicant who holds a
terminal operator license in the other jurisdiction after
conducting an evaluation of the information relating to the
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applicant from the other jurisdictions, as updated by the
board, and evaluating other information related to the
applicant received from that jurisdiction and other
jurisdictions where the applicant may be licensed, the board
may incorporate such information in whole or in part into the
board's evaluation of the applicant.
(b) Abbreviated process.--
(1) In the event an applicant for a terminal operator
license is licensed in another jurisdiction, the board may
determine to use an alternate process requiring only that
information determined by the board to be necessary to
consider the issuance of a license, including financial
viability of the licensee, to such an applicant.
(2) Nothing in this section shall be construed to waive
fees associated with obtaining a license through the normal
application process.
(c) Current license holders.--In the event an applicant for
a terminal operator license under this part holds a slot machine
license under Part II (relating to gaming) or a terminal
operator license under Part III (relating to video gaming), the
board shall use an abbreviated process requiring only that
information determined by the board to be necessary to consider
the issuance of a license, including financial viability of the
applicant.
(d) Construction.--Nothing in this subsection shall be
construed as an authorization for a terminal operator,
manufacturer licensee or applicant to solicit or execute a
terminal placement agreement prior to or after the effective
date of this section.
§ 5512. Alternative manufacturer licensing standards.
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(a) Determination.--
(1) The board may determine whether the licensing
standards of another jurisdiction within the United States in
which an applicant for a manufacturer license is similarly
licensed are comprehensive and thorough and provide similar
adequate safeguards as those required by this part.
(2) If the board makes that determination, the board may
issue a manufacturer license to an applicant who holds a
similar manufacturer license in the other jurisdiction after
conducting an evaluation of the information relating to the
applicant from the other jurisdictions, as updated by the
board, and evaluating other information related to the
applicant received from that jurisdiction and other
jurisdictions where the applicant may be licensed, the board
may incorporate such information in whole or in part into the
board's evaluation of the applicant.
(b) Abbreviated process.--
(1) In the event an applicant for a manufacturer license
is licensed in another jurisdiction, the board may determine
to use an abbreviated process requiring only that information
determined by the board to be necessary to consider the
issuance of a license, including financial viability of the
applicant.
(2) Nothing in this section shall be construed to waive
fees associated with obtaining a license through the normal
application process.
(c) Current license holders.--In the event an applicant for
a manufacturer license under this part holds a manufacturer
license under section 1317.1 (relating to manufacturer licenses)
or 3508 (relating to manufacturer licenses), the board may
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determine to use an abbreviated process requiring only that
information determined by the board to be necessary to consider
the issuance of a license, including financial viability of the
applicant.
§ 5513. (Reserved).
§ 5514. Establishment licenses.
(a) General requirements.--An eligible skill gaming
establishment that submits an application for an establishment
license under this part shall include at a minimum:
(1) The name, address and photograph of the applicant
and additional financial information required by the board.
(2) A description of the proposed surveillance and
security measures to ensure the security of the proposed
skill gaming area.
(3) A current tax lien certificate issued by the
department.
(4) The criminal history record of the applicant.
(5) Verification that the applicant meets the definition
of an eligible establishment under section 5102 (relating to
definitions).
(b) Nontransferability.--A license issued under this section
shall not be transferable.
(c) Ongoing duty.--An eligible skill gaming establishment
applying for a license under this section shall continue to
provide information required by the board or the bureau and
cooperate in any inquiry or investigation.
(d) Review and approval.--Upon being satisfied that the
requirements of subsection (a) have been met, the board may
approve the application and issue the applicant an establishment
license consistent with all of the following:
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(1) (i) The license shall be valid for a period of five
years.
(ii) Nothing in this paragraph shall be construed to
relieve a licensee of the affirmative duty to notify the
board of a change relating to the status of its license
or to information contained in application materials on
file with the board.
(2) The license shall be nontransferable.
(3) Other conditions established by the board.
(e) Renewal.--
(1) At least six months prior to expiration of an
establishment license, the establishment licensee seeking
renewal of its license shall submit a renewal application
accompanied by the renewal fee to the board.
(2) If the renewal application satisfies the
requirements of subsection (d), the board may renew the
establishment license.
(3) If the board receives a complete renewal application
but fails to act upon the renewal application prior to the
expiration of the establishment license, the establishment
license shall continue in effect until acted upon by the
board.
(f) Eligibility requirements.--
(1) Beginning 180 days after the effective date of this
paragraph, an applicant shall have a 120-day period to apply
for a skill gaming establishment license. An applicant must
hold one of the following categories of license issued by the
Pennsylvania Liquor Control Board, which license shall be
either active or in safekeeping status:
(i) Brewery.
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(ii) Brewery pub.
(iii) Brewery storage.
(iv) Hotel (liquor).
(v) Hotel (malt).
(vi) Restaurant.
(vii) Catering club (liquor).
(viii) Club (liquor).
(ix) Club (malt).
(x) Distributor (malt).
(xi) Importing distributor (malt).
(xii) Eating place retail dispenser (malt).
(2) Beginning one year after the effective date of this
paragraph, any establishment that is a lottery sales agent
under section 305 of the act of August 26, 1971 (P.L.351,
No.91), known as the State Lottery Law, may apply to the
board for any remaining establishment licenses, up to the
county quota.
(3) The board shall accept applications from lottery
sales agents for a period of 60 days.
(4) If the number of applications received by the board
from lottery agents in a given county during the 90-day
period under paragraph (3) exceeds the number of licenses
available for that county, then the board shall randomly
select from the pool of valid applications received and
approve the applications of the randomly selected applicants,
up to the county quota.
§ 5515. License or permit prohibition.
The following apply:
(1) The board shall be prohibited from granting a
license under this part to any applicant who has been
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convicted of a gambling-related felony offense in any
jurisdiction. The board shall determine, in the board's sole
discretion, whether a felony offense is gambling-related.
(2) For purposes of this section, a felony offense is
any of the following:
(i) An offense classified as a felony or punishable
under the laws of this Commonwealth by imprisonment for
more than five years.
(ii) An offense which, under the laws of another
jurisdiction, is punishable by imprisonment for more than
five years.
(iii) An offense under the laws of another
jurisdiction which, if committed in this Commonwealth,
would be subject to imprisonment for more than five
years.
(3) The board shall be prohibited from issuing a skill
gaming establishment license if issuing such license would
result in a county quota being exceeded.
§ 5516. Issuance and renewal.
(a) Issuance.--
(1) In addition to any other criteria provided under
this part, any terminal operator licensee, skill gaming
establishment, manufacturer licensee, gaming employee, gaming
manager, key employee, principal or other person that the
board approves as qualified to receive a license, permit or
other authorization under this part shall be issued a license
upon the payment of a fee required in section 6101 (relating
to fees) and upon the fulfillment of conditions required by
the board or provided for in this part.
(2) Nothing contained in this part is intended or shall
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be construed to create an entitlement to a license or other
authorization by a person.
(b) Renewal.--
(1) A license issued under this part unless otherwise
provided shall be subject to renewal every five years.
(2) The application for renewal of a license or permit,
unless otherwise provided, shall be submitted at least 180
days prior to the expiration of the permit or license and
shall include an update of the information contained in the
initial application and any prior renewal applications and
the payment of any renewal fee required by section 6101.
(3) Nothing in this subsection shall be construed to
relieve a licensee of the affirmative duty to notify the
board of a change relating to the status of its license or
permit or to other information contained in the application
materials on file with the board.
(c) Revocation or failure to renew.--
(1) In addition to other sanctions the board may impose
under this part, the board may at its discretion suspend,
revoke or deny renewal of a license issued under this part if
the board receives information from any source that the
applicant or any of its officers, directors, owners or key
employees is in violation of any provision of this part, that
the applicant has furnished the board with false or
misleading information or that the information contained in
the applicant's initial application or renewal application is
no longer true and correct such that the applicant is no
longer eligible.
(2) In the event of a revocation or failure to renew,
the licensee's authorization to conduct the previously
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approved activity shall immediately cease the activity and
all fees paid in connection with the license shall be
forfeited.
(3) In the event of a suspension, the applicant's
authorization to conduct the previously approved activity
shall immediately cease until the board has notified the
applicant that the suspension is no longer in effect.
(d) Nontransferability of licenses.--
(1) A license issued by the board is a grant of the
privilege to conduct a business in this Commonwealth.
(2) Except as permitted by section 5517 (relating to
change in ownership or control of terminal operator
licensee), a license granted or renewed under this part may
not be sold, transferred or assigned to another person or
location.
(3) A licensee may not pledge or otherwise grant a
security interest in or lien on the license.
(4) The board has the sole discretion to issue, renew,
condition or deny the issuance of a license based upon the
requirements of this part.
(5) Nothing contained in this part is intended or shall
be construed to create in any person an entitlement to a
license.
§ 5517. Change in ownership or control of terminal operator
licensee.
(a) Notification and approval.--
(1) A terminal operator licensee shall promptly notify
the board of a proposed or contemplated change of ownership
of the terminal operator licensee by a person or group of
persons acting in concert which involves any of the
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following:
(i) More than 5% of a terminal operator licensee's
securities or other ownership interests.
(ii) More than 5% of the securities or other
ownership interests of a corporation or other form of
business entity that owns directly or indirectly at least
20% of the voting or other securities or other ownership
interests of the terminal operator licensee.
(iii) The sale of all or substantially all of a
terminal operator licensee's assets.
(iv) Any other transaction or occurrence deemed by
the board to be relevant to license qualifications.
(2) (i) Notwithstanding the provisions of paragraph
(1), a terminal operator licensee shall not be required
to notify the board of an acquisition by an institutional
investor under paragraph (1)(i) or (ii) if the
institutional investor holds less than 10% of the
securities or other ownership interests referred to in
paragraph (1)(i) or (ii), the securities or interests are
publicly traded securities and its holdings of the
securities were purchased for investment purposes only
and the institutional investor files with the board a
certified statement to the effect that it has no
intention of influencing or affecting, directly or
indirectly, the affairs of the licensee, provided,
however, that it shall be permitted to vote on matters
put to the vote of the outstanding security holders.
(ii) Notice to the board and board approval shall be
required prior to completion of any proposed or
contemplated change of ownership of a terminal operator
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licensee that meets the criteria of this section.
(b) Qualification of purchaser of terminal operator licensee
and change of control.--
(1) The purchaser of all or substantially all of the
assets of a terminal operator licensee shall, if not already
a terminal operator licensee, independently qualify for a
license in accordance with this part and shall pay the
license fee as required by section 6101 (relating to fees).
(2) A change in control of a terminal operator licensee
shall require that the transferee must independently qualify
for a license in accordance with this part, and the
transferee shall pay a new license fee as required by section
6101, except as otherwise required by the board under this
section.
(3) The new license fee shall be paid upon the
assignment and actual change of control or ownership of the
terminal operator license.
(c) Change in control defined.--For purposes of this
section, a change in control of a terminal operator licensee
shall mean the acquisition by a person or group of persons
acting in concert of more than 20% of a terminal operator
licensee's securities or other ownership interests, with the
exception of any ownership interest of the person that existed
at the time of initial licensing and payment of the initial
license fee, or more than 20% of the securities or other
ownership interests of a corporation or other form of business
entity that owns directly or indirectly at least 20% of the
voting or other securities or other ownership interests of the
terminal operator licensee.
(d) Fee reduction.--The board may in its discretion
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eliminate the need for qualification or proportionately reduce,
but not eliminate, the new license fee otherwise required under
this section in connection with a change of control of a
terminal operator licensee, depending upon the type of
transaction, the relevant ownership interests and changes to the
interests resulting from the transaction and other
considerations deemed relevant by the board.
(e) License revocation.--Failure to comply with this section
may cause the license issued under this part to be revoked or
suspended by the board unless the purchase of the assets or the
change in control that meets the criteria of this section has
been independently qualified in advance by the board and any
required license fee has been paid.
§ 5518. Skill gaming accounting controls and audits.
(a) Approval.--Except as otherwise provided by this part, a
terminal operator license applicant shall, in addition to
obtaining a terminal operator license, obtain approval from the
board in consultation with the department of its internal
control systems and audit protocols prior to the installation
and operation of skill gaming terminals at licensed
establishments.
(b) Minimum requirements.--At a minimum, the applicant's
proposed internal controls and audit protocols shall:
(1) Safeguard its assets and revenues, including the
recording of cash and cash equivalents and evidences of
indebtedness related to the skill gaming terminals.
(2) Provide for reliable records, accounts and reports
of a financial event that occurs in the operation of a skill
gaming terminal, including reports to the board related to
the skill gaming terminals.
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(3) Ensure that each skill gaming terminal directly
provides or communicates all required activities and
financial details to the central control computer system as
set by the board and the department.
(4) Provide for accurate and reliable financial records.
(5) Ensure that a financial event that occurs in the
operation of a skill gaming terminal is performed only in
accordance with the management's general or specific
authorization, as approved by the board.
(6) Ensure that a financial event that occurs in the
operation of a skill gaming terminal is recorded adequately
to permit proper and timely reporting of gross revenue and
the calculation thereof and of fees and taxes and to maintain
accountability for assets.
(7) Ensure that access to assets is permitted only in
accordance with management's specific authorization, as
approved by the board.
(8) Ensure that recorded accountability for assets is
compared with actual assets at intervals as required by the
board and appropriate action is taken with respect to
discrepancies.
(9) Ensure that all functions, duties and
responsibilities are appropriately segregated and performed
in accordance with sound financial practices by competent,
qualified personnel.
(10) Meet any other requirement of the board or the
department.
(c) Internal control.--A terminal operator license applicant
shall submit to the board and department, in such manner as the
board requires, a description of its administrative and
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accounting procedures in detail, including its written system of
internal control. The written system of internal control shall
include:
(1) Records of direct and indirect ownership in the
proposed terminal operator licensee, its affiliate,
intermediary, subsidiary or holding company.
(2) An organizational chart depicting appropriate
segregation of employee functions and responsibilities.
(3) A description of the duties and responsibilities of
each employee position shown on the organizational chart.
(4) A detailed narrative description of the
administrative and accounting procedures designed to satisfy
the requirements of this section.
(5) Record retention policy.
(6) Procedure to ensure that assets are safeguarded,
including mandatory count procedures.
(7) A statement signed by the chief financial officer of
the terminal operator license applicant or other competent
person and the chief executive officer of the terminal
operator license applicant or other competent person
attesting that the officer believes, in good faith, that the
system satisfies the requirements of this section.
(8) Other items that the board or department may require
in its discretion.
§ 5519. Multiple licenses prohibited.
(a) Manufacturer restriction.--A manufacturer licensee under
this part may not hold an establishment license under this part
or a terminal operator license under this part, and may not own,
manage or control any establishment licensee or terminal
operator licensee.
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(b) (Reserved).
(c) Terminal operator restriction.--A terminal operator
licensee under this part may not hold an establishment license
under this part or a manufacturer license under this part, and
may not own, manage or control a terminal operator licensee or
an establishment licensee.
(d) Establishment restriction.--An establishment licensee
under this part may not hold a manufacturer license under this
part or terminal operator license under this part, and may not
own, manage or control a manufacturer licensee or a terminal
operator licensee.
(e) Existing licenses.--Nothing in this part shall be
construed to prohibit a person or entity that has been approved
by the board for licensure under Part II (relating to gaming) or
III (relating to video gaming) from applying for and receiving a
license under this part.
CHAPTER 57
OPERATION
Sec.
5701. Testing and certification of terminals.
5702. Skill gaming limitations.
5703. (Reserved).
5704. Terminal placement agreements.
5705. Duties of licensees.
5706. Compulsive and problem gambling.
§ 5701. Testing and certification of terminals.
(a) Requirement for testing.--A skill gaming terminal or
redemption terminal or associated equipment may not be made
available for use in this Commonwealth prior to being tested and
certified by the board in accordance with this section.
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(b) Skill gaming terminal specifications.--Skill gaming
terminals shall be tested and certified to meet the following
specifications:
(1) The skill gaming terminal shall have the ability to
be linked to the central control computer.
(2) The skill gaming terminal shall be marked with an
irremovable identification plate that is placed in a
conspicuous location on the exterior of the skill gaming
terminal. The identification plate shall contain the name of
the manufacturer licensee and the serial and model numbers of
the skill gaming terminal.
(3) The skill gaming terminal shall prominently display
the rules of play either on the skill gaming terminal face or
screen.
(4) The skill gaming terminal may not have the ability
to dispense cash, tokens or anything of value, except
redemption tickets which shall only be exchangeable for cash
at a redemption terminal or reinserted into another skill
gaming terminal located in the same skill gaming area as the
skill gaming terminal.
(5) The cost of a credit shall only be 1¢, 5¢, 10¢ or
25¢.
(6) The maximum wager per individual game shall not
exceed $5.
(7) The maximum prize per individual game shall not
exceed $1,000.
(8) The skill gaming terminal shall be designed and
manufactured with total accountability to include gross
proceeds, net profits, winning percentages and other
information the board requires.
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(9) Any portion or phase of a game offered by a skill
gaming terminal that is predominantly based on chance shall
pay out a minimum of 85% of the amount wagered for that
portion or phase of the game.
(10) Other specifications the board requires.
(c) Redemption terminal specifications.--Redemption
terminals shall be tested and certified to meet the following
specifications:
(1) The redemption terminal shall be marked with an
irremovable identification plate that is placed in a
conspicuous location on the exterior of the redemption
terminal. The identification plate shall contain the name of
the manufacturer licensee and the serial and model numbers of
the redemption terminal.
(2) The redemption terminal shall only accept redemption
tickets from skill gaming terminals located in the same skill
gaming area.
(3) The redemption terminal shall be designed and
manufactured with total accountability to record information
the board requires.
(4) Other specifications the board requires.
(d) Private testing.--The board may, in its discretion, rely
upon the certification of a skill gaming terminal or redemption
terminal that has met the testing and certification standards of
one or more board-approved independent private testing and
certification facilities.
(e) Testing and certification fee.--
(1) A fee for the testing and certification of a skill
gaming terminal or redemption terminal shall be paid by the
manufacturer licensee submitting the terminal, which fee
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shall be an amount established by the board according to a
schedule adopted by the board.
(2) Fees established by the board shall be exempt from
any fee limitation contained in section 4101 (relating to
fees).
(f) Central control computer compatibility.--The board shall
ensure that all skill gaming terminals certified and approved
for use in this Commonwealth are compatible and comply with the
central control computer and protocol specifications approved by
the department.
§ 5702. Skill gaming limitations.
(a) Establishment licensee limitations.--An establishment
licensee may offer skill gaming terminals for play within its
premises, subject to the following:
(1) No more than two skill gaming terminals may be
placed on the premises of an establishment licensee that
meets either of the following:
(i) a location authorized to sell Pennsylvania
Lottery tickets or shares under the act of August 26,
1971 (P.L.351, No.91), known as the State Lottery Law; or
(ii) is a licensed premises approved by the
Pennsylvania Liquor Control Board for the sale of liquor,
alcohol or malt or brewed beverages under any of the
following license categories, limited to licenses in
either active or safekeeping status:
(A) Brewery.
(B) Brewery pub.
(C) Brewery storage.
(D) Hotel (liquor).
(E) Hotel (malt).
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(F) Restaurant.
(G) Distributor (malt).
(H) Importing distributor (malt).
(I) Eating place retail dispenser (malt).
(2) No more than four skill gaming terminals may be
placed on the premises of an establishment licensee that is a
licensed premises approved by the Pennsylvania Liquor Control
Board for the sale of liquor, alcohol or malt or brewed
beverages under any of the following license categories,
limited to licenses in either active or safekeeping status:
(i) Catering club (liquor).
(ii) Club (liquor).
(iii) Club (malt).
(3) Redemption tickets shall only be exchanged for cash
through a redemption terminal or reinserted into another
skill gaming terminal in the same skill gaming area or as
otherwise authorized by the board in the event of a failure
or malfunction in a redemption terminal, and at least one
redemption terminal shall be located in the skill gaming
area.
(4) Skill gaming terminals located on the premises of
the establishment licensee shall be placed and operated by a
terminal operator licensee pursuant to a terminal placement
agreement.
(5) The skill gaming area shall be easily seen and
observed by at least one employee of the establishment
licensee.
(6) The skill gaming area shall, at all times, be
monitored through video surveillance.
(7) No establishment licensee may provide an incentive.
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(8) No minor shall be permitted to play a skill gaming
terminal or enter the skill gaming area.
(9) No visibly intoxicated person shall be permitted to
play a skill gaming terminal.
(10) No establishment licensee may extend credit or
accept a credit card or debit card for play of a skill gaming
terminal.
(11) No establishment licensee may make structural
alterations or significant renovations to a skill gaming area
unless the establishment licensee has notified the terminal
operator licensee and obtained prior approval from the board.
(12) No establishment licensee may move or disconnect a
skill gaming terminal or redemption terminal from its power
source or from the central control computer after
installation by a terminal operator licensee.
(b) Terminal operator licensee limitations.--A terminal
operator licensee may place and operate skill gaming terminals
on the premises of an establishment licensee, subject to the
following:
(1) Redemption tickets shall only be exchanged for cash
through a redemption terminal located within the same skill
gaming area or reinserted into another skill gaming terminal
located in the same skill gaming area as the skill gaming
terminal.
(2) Skill gaming terminals located on the premises of
the establishment licensee shall be placed and operated
pursuant to a terminal placement agreement.
(3) No terminal operator licensee may provide an
incentive.
(4) No terminal operator licensee may extend credit or
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accept a credit card or debit card for play of a skill gaming
terminal.
(5) No terminal operator licensee may give or offer to
give, directly or indirectly, any type of inducement to a
skill gaming establishment to secure or maintain a terminal
placement agreement.
(6) A terminal operator licensee shall only operate,
install or otherwise make available for public use a skill
gaming terminal or redemption terminal that has been obtained
from a manufacturer licensee.
(7) No terminal operator licensee may make structural
alterations or significant renovations to a skill gaming area
unless the terminal operator licensee has notified the
establishment licensee and obtained prior approval from the
board.
(8) No terminal operator licensee may move a skill
gaming terminal or redemption terminal after installation
unless prior approval is obtained from the board.
(9) An establishment licensee must employ at least one
gaming manager.
§ 5703. (Reserved).
§ 5704. Terminal placement agreements.
(a) Requirement for agreement.--A terminal operator licensee
may not place and operate skill gaming terminals on the premises
of an establishment licensee unless pursuant to a terminal
placement agreement approved by the board and executed no less
than 180 days after the effective date of this subsection.
Approval shall be presented upon connection of one or more skill
gaming terminals at the establishment licensee to the central
control computer.
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(b) Form of agreement.--The board shall establish through
regulation minimum standards for terminal placement agreements.
(c) Length of agreement.--Terminal placement agreements
shall be valid for a minimum 24-month term but shall not exceed
a 60-month term.
(d) Provisions required.--A terminal placement agreement
shall include a provision that:
(1) Renders the agreement invalid if either the terminal
operator license or terminal operator application or the
establishment license or establishment licensee application
is denied, revoked, not renewed, withdrawn or surrendered.
(2) Identifies who solicited the terminal placement
agreement on behalf of a terminal operator licensee or
applicant.
(e) Parties to agreement.--Only an establishment licensee or
applicant may sign or agree to sign a terminal placement
agreement with an applicant for a terminal operator license or a
terminal operator licensee.
(f) Void agreements.--An agreement entered into by an
eligible skill gaming establishment prior to 180 days after the
effective date of this subsection with a person for the
placement, operation, service or maintenance of skill gaming
terminals, including an agreement granting a person the right to
enter into an agreement or match any offer made after the
effective date of this subsection, shall be void and may not be
approved by the board.
(g) Transferability of agreements.--A terminal placement
agreement may not be transferred or assigned unless the person
making the assignment is either a terminal operator applicant or
terminal operator licensee and the person receiving the
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assignment of the terminal placement agreement is either a
terminal operator applicant or terminal operator licensee under
this chapter.
§ 5705. Duties of licensees.
A person issued a license under this part shall:
(1) Provide assistance or information required by the
board, the bureau, the department or law enforcement, and
cooperate in inquiries, investigations and hearings.
(2) Consent to inspections, searches and seizures.
(3) Inform the board of actions that the person believes
would constitute a violation of this part.
(4) Inform the board of arrests for violations of
offenses enumerated under 18 Pa.C.S. (relating to crimes and
offenses).
(5) Report illegal or unlicensed games or devices to the
board and to law enforcement.
§ 5706. Compulsive and problem gambling.
(a) Required posting.--
(1) An establishment licensee shall conspicuously post
signs similar to the following statement:
If you or someone you know has a gambling problem,
help is available. Call (toll-free telephone number)
or text (toll-free telephone number).
(2) At least one sign shall be posted within the skill
gaming area and at least one sign shall be posted within five
feet of each automated teller machine located within the
establishment licensee's premises, if applicable.
(b) Toll-free telephone number.--The toll-free telephone
number required to be posted in subsection (a) shall be the same
number maintained by the Department of Drug and Alcohol Programs
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or successor agency under section 5310 (relating to Department
of Drug and Alcohol Programs or successor agency).
(c) Problem gambling information.--
(1) An establishment licensee shall have available on
the premises access to materials regarding compulsive and
problem gambling assistance.
(2) The available materials required by paragraph (1)
shall be a uniform, Statewide handout developed by the board
in consultation with the Department of Drug and Alcohol
Programs or successor agency.
(3) The available materials required by paragraph (1)
shall be displayed conspicuously at least within the skill
gaming area.
(d) Mandatory training.--
(1) The board's Office of Compulsive and Problem
Gambling, in consultation with the Department of Drug and
Alcohol Programs or successor agency, shall develop a
mandatory training program for employees and management of an
establishment licensee who oversee the establishment
licensee's skill gaming area. The training program shall
address responsible gaming and other compulsive and problem
gambling issues related to skill gaming terminals.
(2) The board shall establish a fee to cover the cost of
the mandatory training program.
(e) Penalty.--An establishment licensee that fails to
fulfill the requirements of subsection (a), (b), (c) or (d)
shall be assessed by the board an administrative penalty in an
amount established by the board in its discretion, and may have
its establishment license suspended.
CHAPTER 59
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ENFORCEMENT
Sec.
5901. Exclusion or ejection of certain persons.
5902. Repeat offenders.
5903. Self-exclusion.
5904. Investigations and enforcement.
5905. Prohibited acts and penalties.
5906. Report of suspicious transactions.
5907. Additional authority.
5908. Detention.
§ 5901. Exclusion or ejection of certain persons.
(a) Exclusion requirement.--The board shall by regulation
provide for the establishment of a list of individuals who are
to be excluded or ejected from the skill gaming area of an
establishment licensee. The provisions shall define the
standards for exclusion and shall include standards relating to
individuals who are career or professional offenders as defined
by regulations of the board or whose presence in a skill gaming
area would, in the opinion of the board, be inimical to the
interest of the Commonwealth or of licensed skill gaming in this
Commonwealth, or both.
(b) Categories to be defined.--The board shall promulgate
regulations with definitions establishing categories of
individuals who shall be excluded or ejected under this section,
including cheats and persons whose privileges for licensure,
certification, permit or registration have been revoked.
(c) Discrimination prohibited.--Race, color, creed, national
origin or ancestry or sex shall not be a reason for placing the
name of a person upon a list under this section.
(d) Prevention of access.--The board shall, in consultation
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with terminal operator licensees and establishment licensees,
develop policies and procedures to reasonably prevent
individuals on the list required by this section from entering a
skill gaming area.
(e) Sanctions.--The board may impose sanctions upon an
establishment licensee in accordance with this part if the
establishment licensee knowingly fails to implement the policies
and procedures established by the board under subsection (d).
(f) List not all-inclusive.--A list compiled by the board
under this section shall not be deemed an all-inclusive list,
and an establishment licensee shall keep from the skill gaming
area individuals known to the establishment licensee to be
within the classifications declared in this section and the
regulations promulgated under this section whose presence in a
skill gaming area would be inimical to the interest of the
Commonwealth or of licensed skill gaming in this Commonwealth,
or both, as defined in standards established by the board.
(g) Notice.--If the bureau decides to place the name of a
person on a list under this section, the bureau shall serve
notice of the decision to the person by personal service or
certified mail at the last known address of the person. The
notice shall inform the person of the right to request a hearing
under subsection (h).
(h) Hearing.--
(1) Within 30 days after receipt of notice under
subsection (g), the person named for exclusion or ejection
may demand a hearing before the board, at which hearing the
bureau must demonstrate that the person named for exclusion
or ejection satisfies the criteria for exclusion or ejection
established by this section and the board's regulations.
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(2) Failure of the person to demand a hearing within 30
days after service shall be deemed an admission of all
matters and facts alleged in the bureau's notice and shall
preclude the person from having an administrative hearing,
but shall in no way affect the right to judicial review as
provided in this section.
(i) Review.--
(1) If, upon completion of a hearing on the notice of
exclusion or ejection, the board determines that placement of
the name of the person on the exclusion or ejection list is
appropriate, the board shall make and enter an order to that
effect.
(2) The order shall be subject to review by Commonwealth
Court in accordance with the rules of court.
§ 5902. Repeat offenders.
(a) Discretion to exclude or eject.--An establishment
licensee may exclude or eject from the establishment licensee's
skill gaming area or premises an individual who is known to have
been convicted of a misdemeanor or felony committed in or on the
premises of a licensed establishment.
(b) Construction.--Nothing in this section or in any other
law of this Commonwealth shall be construed to limit the right
of an establishment licensee to exercise its common law right to
exclude or eject permanently from its skill gaming area or
premises an individual who:
(1) disrupts the operations of its premises;
(2) threatens the security of its premises or its
occupants; or
(3) is disorderly or intoxicated.
§ 5903. Self-exclusion.
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(a) Establishment of list.--
(1) The board shall provide by regulation for the
establishment of a list of individuals self-excluded from
skill gaming activities within specific establishment
licensees or establishment licensees in geographic areas of
the Commonwealth.
(2) An individual may request placement on the list of
self-excluded individuals by:
(i) acknowledging in a manner to be established by
the board that the individual is a problem gambler;
(ii) agreeing that, during any period of voluntary
exclusion, the individual may not collect any winnings or
recover any losses resulting from any skill gaming
activity within establishment licensees and that
individual may be subject to arrest for trespass; and
(iii) agreeing to another condition established by
the board.
(b) Regulations.--The regulations of the board shall
establish:
(1) Procedures for placement on and removal from the
list of a self-excluded individual.
(2) Procedures for the transmittal to establishment
licensees of identifying information concerning a self-
excluded individual and shall require establishment licensees
to establish reasonable procedures designed at a minimum to
prevent entry of a self-excluded individual into the skill
gaming area of an establishment licensee, provided that the
board may not require skill gaming terminals to be equipped
with identification card-reading devices or require
establishment licensees to purchase identification card-
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reading devices.
(3) Procedures for the transmittal to terminal operator
licensees of identifying information concerning a self-
excluded individual and shall require terminal operator
licensees to establish procedures to remove self-excluded
individuals from customer loyalty or reward card programs and
targeted mailings or other forms of advertising or
promotions.
(c) Liability.--An establishment licensee or employee
thereof shall not be liable to a self-excluded individual or to
another party in a judicial proceeding for harm, monetary or
otherwise, which may arise as a result of:
(1) the failure of the establishment licensee to
withhold skill gaming privileges from or restore skill gaming
privileges to the self-excluded individual; or
(2) otherwise permitting or not permitting the self-
excluded individual to engage in skill gaming activity within
the establishment licensee's premises while on the list of
self-excluded individuals.
(d) Nondisclosure.--The board's list of self-excluded
individuals shall not be open to public inspection.
§ 5904. Investigations and enforcement.
(a) Bureau of Investigation and Enforcement, Skill Gaming.--
The board shall establish the Skill Gaming Division within the
bureau, which shall have the following powers and duties:
(1) Enforce the provisions of this part.
(2) Investigate and review applicants and applications
for a license or registration. The bureau shall be prohibited
from disclosing any portion of a background investigation
report to a member of the board prior to the submission of
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the bureau's final background investigation report relating
to the applicant's suitability for licensure to the board.
The Skill Gaming Division of the Office of Enforcement
Counsel shall prepare the final background investigation
report for inclusion in a final report relating to the
applicant's suitability for licensure.
(3) Investigate licensees, registrants and other persons
regulated by the board under this part for noncriminal
violations, including potential violations referred to the
bureau by the board or other person.
(4) Monitor skill gaming operations to ensure compliance
with this part.
(5) Inspect and examine licensed entities. Inspections
may include the review and reproduction of documents or
records.
(6) Conduct reviews of a licensed entity as necessary to
ensure compliance with this part. A review may include the
review of accounting, administrative and financial records,
management control systems, procedures and other records
utilized by a licensed entity.
(7) Refer possible criminal violations related to this
title or 18 Pa.C.S. (relating to crimes and offenses) to law
enforcement. The bureau shall not have the power of arrest.
(8) Cooperate in the investigation and prosecution of
criminal violations related to this part.
(9) Be a criminal justice agency under 18 Pa.C.S. Ch. 91
(relating to criminal history record information).
(b) Office of Enforcement Counsel, Skill Gaming Division.--
The board shall establish the Skill Gaming Division within the
Office of Enforcement Counsel, which shall act as the prosecutor
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in all noncriminal enforcement actions initiated by the bureau
under this part and shall have the following powers and duties:
(1) Advise the bureau on all matters related to skill
gaming, including the granting of licenses or registrations,
the conduct of background investigations, audits and
inspections and the investigation of potential violations of
this part.
(2) File on behalf of the bureau recommendations and
objections relating to the issuance of licenses and
registrations under this part.
(3) Initiate, in its sole discretion, proceedings for
noncriminal violations of this part by filing a complaint or
other pleading with the board.
(c) Powers and duties of department.--
(1) The department shall at all times have the power of
access to examine and audit equipment and records relating to
all aspects of the operation of skill gaming terminals and
redemption terminals under this part.
(2) Notwithstanding the provisions of section 353(f) of
the act of March 4, 1971 (P.L.6, No.2), known as the Tax
Reform Code of 1971, the department shall supply the board,
the bureau, the Pennsylvania State Police and the Office of
Attorney General with information concerning the status of
delinquent taxes owed by applicants or licensees.
(d) Powers and duties of the Pennsylvania State Police.--The
Pennsylvania State Police shall have the following powers and
duties:
(1) Promptly conduct background investigations on
persons as directed by the board under this part. The
Pennsylvania State Police may contract with other law
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enforcement annuitants to assist in the conduct of
investigations under this paragraph.
(2) Initiate proceedings for criminal violations of this
part.
(3) Provide the board with all information necessary for
all actions under this part for all proceedings involving
criminal enforcement of this part.
(4) Inspect, when appropriate, a licensee's person and
personal effects present within an establishment licensee's
premises under this part while that licensee is present.
(5) Enforce the criminal provisions of this part and all
other criminal laws of this Commonwealth.
(6) Fingerprint applicants.
(7) Exchange fingerprint data with and receive national
criminal history record information from the Federal Bureau
of Investigation for use in background investigations
performed by the bureau under this part.
(8) Receive and take appropriate action on any referral
from the bureau relating to criminal conduct.
(9) Conduct administrative inspections on the premises
of an establishment licensee at times, under circumstances
and to the extent the bureau determines to ensure compliance
with this part and the regulations of the board and, in the
course of inspections, review and make copies of all
documents and records required by the inspection through
onsite observation and other reasonable means to assure
compliance with this part and regulations promulgated
thereunder.
(10) Conduct audits or verification of information of
skill gaming terminal operations at times, under
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circumstances and to the extent as the bureau determines.
This paragraph includes the review of accounting,
administrative and financial records and management control
systems, procedures and records utilized by a terminal
operator licensee.
(11) Report violations of this part to the bureau that
are found during the normal course of duties required under
any law of this Commonwealth.
(e) Powers and duties of Attorney General.--The gaming unit
within the Office of Attorney General shall investigate and
institute criminal proceedings as authorized under subsection
(f).
(f) Criminal action.--
(1) County district attorneys shall have the authority
to investigate and to institute criminal proceedings for a
violation of this part.
(2) In addition to the authority conferred upon the
Attorney General under the act of October 15, 1980 (P.L.950,
No.164), known as the Commonwealth Attorneys Act, the
Attorney General shall have the authority to investigate and,
following consultation with the appropriate district
attorney, to institute criminal proceedings for a violation
of this part or under Title 18.
(3) A person charged with a violation of this part by
the Attorney General shall not have standing to challenge the
authority of the Attorney General to investigate or prosecute
the case, and, if any such challenge is made, the challenge
shall be dismissed and no relief shall be available in the
courts of this Commonwealth to the person making the
challenge.
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(g) Regulatory action.--Nothing contained in subsection (e)
shall be construed to limit the existing regulatory or
investigative authority of an agency or the Commonwealth whose
functions relate to persons or matters within the scope of this
part.
(h) Inspection, seizure and warrants.--
(1) The board, the bureau, the department and the
Pennsylvania State Police shall have the authority without
notice and without warrant to do all of the following in the
performance of their duties under this part:
(i) Inspect and examine all premises where:
(A) skill gaming operations are conducted;
(B) skill gaming terminals, redemption terminals
and associated equipment are manufactured, sold,
distributed or serviced; and
(C) records of these activities are prepared or
maintained.
(ii) Inspect all equipment and supplies in, about,
upon or around premises referred to in subparagraph (i).
(iii) Seize, summarily remove and impound equipment
and supplies from premises referred to in subparagraph
(i) for the purposes of examination and inspection.
(iv) Inspect, examine and audit all books, records
and documents pertaining to a terminal operator
licensee's skill gaming operation.
(v) Seize, impound or assume physical control of any
book, record, ledger or device related to skill gaming
operations or the skill gaming terminals or redemption
terminals.
(2) The provisions of paragraph (1) shall not be
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construed to limit warrantless inspections, except in
accordance with constitutional requirements.
(3) To further effectuate the purposes of this part, the
bureau and the Pennsylvania State Police may obtain
administrative warrants for the inspection and seizure of
property possessed, controlled, bailed or otherwise held by
an applicant, licensee, intermediary, subsidiary, affiliate
or holding company.
(i) Information sharing and enforcement referral.--With
respect to the administration, supervision and enforcement of
this part, the bureau, the department, the Pennsylvania State
Police or the Office of Attorney General may obtain or provide
pertinent information regarding applicants or licensees from or
to law enforcement entities or gaming authorities of the
Commonwealth and other domestic, foreign or federally approved
jurisdictions, including the Federal Bureau of Investigation,
and may transmit the information to each other electronically.
§ 5905. Prohibited acts and penalties.
(a) Criminal offenses.--
(1) The provisions of 18 Pa.C.S. § 4902 (relating to
perjury), 4903 (relating to false swearing) or 4904 (relating
to unsworn falsification to authorities) shall apply to a
person providing information or making a statement, whether
written or oral, to the board, the bureau, the department,
the Pennsylvania State Police or the Office of Attorney
General, as required by this part.
(2) It shall be unlawful for a person to willfully:
(i) fail to report, pay or truthfully account for
and pay over a license fee, authorization fee, tax or
assessment imposed under this part; or
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(ii) attempt in any manner to evade or defeat a
license fee, authorization fee, tax or assessment imposed
under this part.
(3) It shall be unlawful for a licensed entity, gaming
employee, key employee or any other person to permit a skill
gaming terminal to be operated, transported, repaired or
opened on the premises of an establishment licensee by a
person other than a person licensed or permitted by the board
under this part.
(4) It shall be unlawful for a licensed entity or other
person to manufacture, supply or place skill gaming
terminals, redemption terminals or associated equipment into
play or display skill gaming terminals, redemption terminals
or associated equipment on the premises of an establishment
licensee without the authority of the board.
(5) It shall be unlawful for a licensed entity or other
person to manufacture, supply, operate, carry on or expose
for play a skill gaming terminal or associated equipment
after the person's license has expired or failed to be
renewed in accordance with this part.
(6) It shall be unlawful for an individual while on the
premises of an establishment licensee to knowingly use
currency other than lawful coin or legal tender of the United
States or a coin not of the same denomination as the coin
intended to be used in the skill gaming terminal or use
counterfeit or altered redemption tickets with the intent to
cheat or defraud a terminal operator licensee or the
Commonwealth or damage the skill gaming terminal or
redemption terminal.
(7) (i) Except as specified in subparagraph (ii), it
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shall be unlawful for an individual to use or possess a
cheating or thieving device, counterfeit or altered
billet, ticket, token or similar object accepted by a
skill gaming terminal or counterfeit or altered
redemption ticket on the premises of an establishment
licensee.
(ii) An authorized employee of a licensee or an
employee of the board may possess and use a cheating or
thieving device, counterfeit or altered billet, ticket,
token or similar object accepted by a skill gaming
terminal or counterfeit or altered redemption ticket in
performance of the duties of employment.
(8) (i) Except as specified in subparagraph (ii), it
shall be unlawful for an individual to knowingly possess
or use while on the premises of an establishment licensee
a key or device designed for the purpose of and suitable
for opening or entering a skill gaming terminal or
redemption terminal that is located on the premises of
the establishment licensee.
(ii) An authorized employee of a licensee or a
member of the board may possess and use a device referred
to in subparagraph (i) in the performance of the duties
of employment.
(9) It shall be unlawful for a person or licensed entity
to possess a device, equipment or material which the person
or licensed entity knows has been manufactured, distributed,
sold, tampered with or serviced in violation of this part
with the intent to use the device, equipment or material as
though it had been manufactured, distributed, sold, tampered
with or serviced under this part.
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(10) It shall be unlawful for a person to sell, offer
for sale, represent or pass off as lawful any device,
equipment or material that the person or licensed entity
knows has been manufactured, distributed, sold, tampered with
or serviced in violation of this part.
(11) It shall be unlawful for an individual to work or
be employed in a position the duties of which would require
licensing under this part without first obtaining the
requisite license issued under this part.
(12) It shall be unlawful for a licensed entity to
employ or continue to employ an individual in a position the
duties of which require a license under this part if the
individual:
(i) Is not licensed under this part.
(ii) Is prohibited from accepting employment from a
licensee.
(13) It shall be unlawful for a minor to wager, play or
attempt to play a skill gaming terminal or submit a
redemption ticket into a redemption terminal.
(14) It shall be unlawful for a terminal operator
licensee to require a skill gaming terminal wager to be
greater than the stated minimum wager or greater than the
stated maximum wager.
(15) An individual who engages in conduct prohibited by
18 Pa.C.S. § 6308 (relating to purchase, consumption,
possession or transportation of liquor or malt or brewed
beverages) on the premises of an establishment licensee
commits a nongambling offense.
(16) It shall be unlawful for an individual to claim,
collect or take, or attempt to claim, collect or take, money
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or anything of value in or from a skill gaming terminal or
redemption terminal with the intent to defraud, or to claim,
collect or take an amount greater than the amount won, or to
manipulate with the intent to cheat, a component of a skill
gaming terminal or redemption terminal in a manner contrary
to the designed and normal operational purpose.
(17) It shall be unlawful for a person to manufacture,
place, offer or play in this Commonwealth an illegal gambling
device as defined under 18 Pa.C.S. § 5513 (relating to
gambling devices, gambling, etc.)
(b) Criminal penalties and fines.--
(1) (i) A person that commits a first offense in
violation of 18 Pa.C.S. § 4902, 4903 or 4904 in
connection with providing information or making any
statement, whether written or oral, to the board, the
bureau, the department, the Pennsylvania State Police,
the Office of Attorney General or a district attorney as
required by this part, commits an offense to be graded in
accordance with the applicable section violated. A person
that is convicted of a second or subsequent violation of
18 Pa.C.S. § 4902, 4903 or 4904 in connection with
providing information or making any statement, whether
written or oral, to the board, the bureau, the
department, the Pennsylvania State Police, the Office of
Attorney General or a district attorney as required by
this part, commits a felony of the second degree.
(ii) A person that violates subsection (a)(2), (3),
(4), (5), (6), (7), (8), (9), (10), (11), (12) or (17)
commits a misdemeanor of the first degree. A person that
is convicted of a second or subsequent violation of
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subsection (a)(2), (3), (4), (5), (6), (7), (8), (9),
(10), (11), (12) or (17) commits a felony of the second
degree.
(2) (i) For a first violation of subsection (a)(1),
(2), (3), (4), (5), (6), (7), (8), (9), (10), (11), (12)
or (17), a person shall be sentenced to pay a fine of:
(A) not less than $75,000 nor more than $150,000
if the person is an individual or establishment
licensee;
(B) not less than $300,000 nor more than
$600,000 if the person is a terminal operator
licensee; or
(C) not less than $150,000 nor more than
$300,000 if the person is a licensed manufacturer or
supplier.
(ii) For a second or subsequent violation of
subsection (a)(1), (2), (3), (4), (5), (6), (7), (8),
(9), (10), (11), (12) or (17), a person shall be
sentenced to pay a fine of:
(A) not less than $150,000 nor more than
$300,000 if the person is an individual or
establishment licensee;
(B) not less than $600,000 nor more than
$1,200,000 if the person is a terminal operator
licensee; or
(C) not less than $300,000 nor more than
$600,000 if the person is a licensed manufacturer or
supplier.
(3) An individual who commits an offense in violation of
subsection (a)(13) or (14) commits a nongambling summary
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offense and upon conviction of a first offense shall be
sentenced to pay a fine of not less than $200 nor more than
$1,000. An individual who is convicted of a second or
subsequent offense under subsection (a)(13) or (14) shall be
sentenced to pay a fine of not less than $500 nor more than
$1,500. In addition to the fine imposed, an individual
convicted of an offense under subsection (a)(13) or (14) may
be sentenced to perform a period of community service not to
exceed 40 hours.
(4) An individual who commits an offense in violation of
subsection (a)(16) commits a nongambling offense to be graded
in accordance with 18 Pa.C.S. § 6308 and shall be subject to
the same penalties imposed under 18 Pa.C.S. § 6308 except
that the fine imposed for a violation of subsection (a)(16)
shall be not less than $350 nor more than $1,000.
(c) Board-imposed administrative sanctions.--
(1) In addition to any other penalty authorized by law,
the board may impose without limitation the following
sanctions:
(i) Revoke the license of a person convicted of a
criminal offense under this part or regulations
promulgated under this part or committing any other
offense or violation of this part or applicable law that
would otherwise disqualify the person from holding the
license.
(ii) Revoke the license of a person determined to
have violated a provision of this part or regulations
promulgated under this part that would otherwise
disqualify the person from holding the license.
(iii) Revoke the license of a person for willfully
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and knowingly violating or attempting to violate an order
of the board directed to the person.
(iv) Subject to subsection (g), assess
administrative penalties as necessary to punish
violations of this part.
(v) Order restitution of money or property
unlawfully obtained or retained by a licensee.
(vi) Enter cease and desist orders which specify the
conduct which is to be discontinued, altered or
implemented by a licensee.
(vii) Issue letters of reprimand or censure, which
letters shall be made a permanent part of the file of the
licensee so sanctioned.
(2) (i) If the board refuses to issue or renew a
license, suspends or revokes a license, assesses civil
penalties, orders restitution, enters a cease and desist
order or issues a letter of reprimand or censure, the
board shall provide the applicant or licensee with
written notification of its decision, including a
statement of the reasons for its decision, by certified
mail within 10 business days of the decision of the
board.
(ii) The applicant or licensee shall have the right
to appeal the decision in accordance with 2 Pa.C.S. Chs.
5 Subch. A (relating to practice and procedure of
Commonwealth agencies) and 7 Subch. A (relating to
judicial review of Commonwealth agency action).
(d) Aiding and abetting.--A person who aids, abets,
counsels, commands, induces, procures or causes another person
to violate this part shall be subject to all sanctions and
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penalties, both civil and criminal, provided under this part.
(e) Continuing offenses.--A violation of this part that is
determined to be an offense of a continuing nature shall be
deemed to be a separate offense on each event or day during
which the violation occurs.
(f) Property subject to seizure, confiscation, destruction
or forfeiture.--
(1) Any equipment, device or apparatus, money, material,
gaming proceeds or substituted proceeds or real or personal
property used, obtained or received or an attempt to use,
obtain or receive the device, apparatus, money, material,
proceeds or real or personal property in violation of this
part or in violation of 18 Pa.C.S. § 5513 shall be subject to
the provisions of 42 Pa.C.S. §§ 5803(a), (b), (b.1), (c),
(d), (e), (f), (f.1), (j), (k), (k.1) and (l) (relating to
asset forfeiture), 5805 (relating to forfeiture procedure),
5806 (relating to motion for return of property), 5807
(relating to restrictions on use), 5807.1 (relating to
prohibition on adoptive seizures) and 5808 (relating to
exceptions).
(2) Cash or proceeds of property subject to forfeiture
under this section shall be distributed as follows:
(i) Fifty percent to the local law enforcement
authority that seized the cash or proceeds.
(ii) Fifty percent to the local district attorney
office in the county in which the seized property was
located.
(g) Penalty limitation.--
(1) Administrative penalties assessed by the board on an
establishment licensee shall not exceed $5,000 for each
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noncriminal violation of this part.
(2) When imposing an administrative penalty on an
establishment licensee for a noncriminal violation of this
part or Part III (relating to video gaming), the board shall
take into consideration the establishment licensee's annual
taxable income and whether the penalty amount would cause the
establishment licensee to cease nonskill gaming operations.
(h) Deposit of fines.--Fines imposed and collected by the
board under subsection (c) shall be deposited into the General
Fund.
§ 5906. Report of suspicious transactions.
(a) Duty.--An establishment licensee or terminal operator
licensee or a person acting on behalf of an establishment
licensee or terminal operator licensee shall, on a form and in a
manner as required by the bureau, notify the bureau of a
suspicious transaction.
(b) Failure to report.--
(1) A person that is required to file a report of a
suspicious transaction under this section and knowingly fails
to file the report or that knowingly causes another person
having that responsibility to fail to file the report commits
a misdemeanor of the third degree.
(2) A person required to file a report of a suspicious
transaction under this section and fails to file the report
or a person that causes another person required under this
section to file a report and fails to file the report shall
be strictly liable for the person's actions and may be
subject to sanctions under section 5905(c) (relating to
prohibited acts and penalties).
(c) Bureau.--The bureau shall maintain a record of all
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reports made under this section for a period of five years. The
bureau shall make the reports available to any Federal or State
law enforcement agency upon written request and without
necessity of subpoena.
(d) Notice prohibited.--
(1) A person that is required to file a report of a
suspicious transaction under this section may not notify an
individual suspected of committing the suspicious transaction
that the transaction has been reported.
(2) A person that violates this subsection commits a
misdemeanor of the third degree and may be subject to
sanctions under section 5905(c).
(e) Immunity.--A person that is required to file a report of
a suspicious transaction under this section and in good faith
makes the report shall not be liable in any civil action brought
by a person for making the report, regardless of whether the
transaction is later determined to be a suspicious transaction.
(f) Sanctions.--
(1) In considering appropriate administrative sanctions
against a person for violating this section, the board shall
consider all of the following:
(i) The risk to the public and to the integrity of
gaming operations created by the conduct of the person.
(ii) The seriousness of the conduct of the person
and whether the conduct was purposeful and with knowledge
that it was in contravention of the provisions of this
part or regulations promulgated under this part.
(iii) Justification or excuse for the conduct by the
person.
(iv) The prior history of the particular licensee or
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person involved with respect to skill gaming terminal
activity.
(v) The corrective action taken by the establishment
licensee or terminal operator licensee to prevent future
misconduct of a like nature from occurring.
(vi) In the case of a monetary penalty, the amount
of the penalty in relation to the severity of the
misconduct and the financial means of the licensee or
person. The board may impose any schedule or terms of
payment of the penalty as it may deem appropriate.
(2) It shall not be a defense to disciplinary action
before the board that a person inadvertently, unintentionally
or unknowingly violated this section. The factors enumerated
under paragraph (1) shall only apply to the degree of the
penalty to be imposed by the board and not to a finding of a
violation itself.
(g) Regulations.--The board shall promulgate regulations to
effectuate the purposes of this section.
§ 5907. Additional authority.
(a) Petition for access to agency information.--
(1) The director of the Office of Enforcement Counsel
within the bureau may petition a court of record having
jurisdiction over information in the possession of an agency
in this Commonwealth or, if there is no court of record,
Commonwealth Court for authorization to review or obtain
information in the possession of an agency in this
Commonwealth by averring specific facts demonstrating that:
(i) The agency has in its possession information
material to a pending investigation or inquiry being
conducted by the bureau under this part.
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(ii) Disclosure or release of the information is in
the best interest of the Commonwealth.
(2) The petition shall request that the court enter a
rule upon the agency to show cause why the agency should not
be directed to disclose to the bureau, or identified agents
thereof, information in the agency's possession about any
pending matter under the jurisdiction of the bureau under
this part.
(3) If the respondent is a local agency, a copy of a
rule issued under this section shall be provided to the
district attorney of the county in which the local agency is
located and the Office of Attorney General.
(4) Upon request of a local agency, the district
attorney or the Attorney General may elect to enter an
appearance to represent the local agency in the proceedings.
(b) Procedure.--
(1) The filing of a petition under this section and
related proceedings shall be in accordance with court rule,
including issuance as of course.
(2) A party to the proceeding may not disclose the
filing of a petition or answer or the receipt, content or
disposition of a rule or order issued under this section,
without leave of court.
(3) A party to the proceedings may request that the
record be sealed and proceedings be closed. The court shall
grant the request if it is in the best interest of a person
or the Commonwealth to do so.
(c) Court determination.--
(1) Following review of the record, the court shall
grant the relief sought by the director of the Office of
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Enforcement Counsel if the court determines that:
(i) The agency has in its possession information
material to the investigation or inquiry.
(ii) Disclosure or release of the information is in
the best interest of the Commonwealth.
(iii) The disclosure or release of the information
is not otherwise prohibited by statute or regulation.
(iv) The disclosure or release of the information
would not inhibit an agency in the performance of the
agency's duties.
(2) If the court grants relief under paragraph (1), the
court shall enter an order authorizing and directing the
information be made available for review in camera.
(d) Release of materials or information.--
(1) If, after an in camera review by the court, the
director of the Office of Enforcement Counsel seeks to obtain
copies of materials in the agency's possession, the court
may, if not otherwise prohibited by statute or regulation,
enter an order that the requested materials be provided.
(2) An order authorizing the release of materials or
other information shall contain direction regarding the
safekeeping and use of the materials or other information
sufficient to satisfy the court that the materials or
information will be sufficiently safeguarded.
(3) In making the determination under paragraph (2), the
court shall consider input of the agency in possession of the
information and input from an agency with which the
information originated concerning a pending investigation or
ongoing matter and the safety of person and property.
(e) Modification of order.--
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(1) If subsequent investigation or inquiry by the bureau
warrants modification of an order entered under this section,
the director of the Office of Enforcement Counsel may
petition to request modification of the order.
(2) Upon the request, the court may modify the order at
any time and in any manner it deems necessary and
appropriate.
(3) The agency named in the original petition shall be
given notice and an opportunity to be heard.
(f) Use of information or materials.--A person who, by any
means authorized by this section, has obtained knowledge of
information or materials solely under this section may use the
information or materials in a manner consistent with any
direction imposed by the court and appropriate to the proper
performance of the person's duties under this part.
(g) Violation.--In addition to the remedies and penalties
provided in this part, a violation of the provisions of this
section may be punished as contempt of court.
(h) Definition.--As used in this section, the term "agency"
shall mean a "Commonwealth agency" or a "local agency" as those
terms are defined in section 102 of the act of February 14, 2008
(P.L.6, No.3), known as the Right-to-Know Law.
§ 5908. Detention.
(a) Reasonable detention.--A peace officer who has probable
cause to believe a criminal violation of this part has occurred
or is occurring on or about an establishment licensee's premises
and who has probable cause to believe a specific individual has
committed or is committing a criminal violation may detain the
individual in a reasonable manner for a reasonable time on the
premises of the establishment licensee to require the suspect to
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identify himself or herself, to verify such identification.
(b) Immunity.--A peace officer shall not be subject to civil
or criminal liability for detention of an individual in
accordance with subsection (a).
CHAPTER 61
REVENUES
Sec.
6101. Fees.
6102. Taxes and assessments.
6103. (Reserved).
6104. Regulatory assessments.
6105. Transfers from Skill Gaming Fund.
§ 6101. Fees.
(a) Application fees.--The following nonrefundable
application fees shall accompany an application for the
following licenses or permits applied for under Chapter 55
(relating to application and licensure):
(1) For a manufacturer license, $50,000.
(2) For a terminal operator license, $25,000.
(3) For an establishment license, $250.
(4) For a key employee or principal license, $500.
(5) For any other authorization authorized by this part,
an amount established by the board, through regulation, which
may not exceed $100.
(b) Initial license and renewal fees.--The following
nonrefundable fees shall be required upon issuance of an initial
license and shall accompany an application for renewal for the
following licenses or permits under Chapter 55:
(1) For a manufacturer license, $4,000,000.
(2) For a terminal operator license, $100,000.
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(3) For an establishment license, an amount equal to
$250 per each skill gaming terminal in operation at the
premises of the establishment licensee.
(4) For a key employee, procurement agent license or
principal license, $2,000.
(5) For any other authorization or license authorized by
this part, an amount established by the board, through
regulation, which may not exceed $500.
(c) Terminal increase fee.--An establishment licensee that
increases the total number of skill gaming terminals within the
establishment after submission of the renewal fee required in
subsection (b) shall provide the board with a $1,000 renewal fee
for each additional skill gaming terminal added to the
establishment within 60 days of installation of each additional
skill gaming terminal.
(d) Deposit of fees.--Fees collected under this section
shall be deposited into the General Fund.
§ 6102. Taxes and assessments.
(a) Fund established.--The Skill Gaming Fund is established
in the State Treasury. Money in the Skill Gaming Fund is
appropriated to the department on a continuing basis for the
purposes under subsection (c).
(b) Skill gaming terminal tax and assessments.--
(1) The department shall determine and each terminal
operator licensee shall pay on a bimonthly basis:
(i) A tax of 35% of its gross terminal revenue from
all skill gaming terminals operated by the terminal
operator licensee within this Commonwealth.
(ii) A regulatory assessment established in section
6104 (relating to regulatory assessments) from the
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terminal operator licensee's weekly gross terminal
revenue.
(2) All money owed under this section shall be held in
trust by the terminal operator licensee until the money is
paid or transferred to the Skill Gaming Fund.
(3) Unless otherwise agreed to by the board, a terminal
operator licensee shall establish a separate bank account to
maintain gross terminal revenue until the money is paid or
transferred under this section.
(c) Transfers and distributions.--The department shall:
(1) Transfer the tax imposed under subsection (b) to the
Skill Gaming Fund.
(2) (Reserved).
(3) Transfer the regulatory assessment imposed under
subsection (b) in accordance with section 6104.
§ 6103. (Reserved).
§ 6104. Regulatory assessments.
(a) Accounts established.--The State Treasurer shall
establish within the State Treasury an account for each terminal
operator for the deposit of a regulatory assessment amount
required under subsection (b) to recover costs or expenses
incurred by the board, the department, the Pennsylvania State
Police and the Office of Attorney General in carrying out their
powers and duties under this part based upon a budget submitted
by the department under subsection (c).
(b) Bimonthly deposits.--
(1) The department shall determine the appropriate
assessment amount for each terminal operator licensee, which
shall be a percentage assessed on the terminal operator
licensee's bimonthly gross terminal revenue.
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(2) The percentage assessed shall not exceed an amount
equal to the costs or expenses incurred by the board, the
department, the Pennsylvania State Police or the Office of
Attorney General in carrying out their powers and duties
under this part based upon a budget submitted by the
department under subsection (c).
(c) Itemized budget reporting.--
(1) The department shall prepare and annually submit to
the chairperson and minority chairperson of the
Appropriations Committee of the Senate and the chairperson
and minority chairperson of the Appropriations Committee of
the House of Representatives an itemized budget consisting of
amounts to be appropriated out of the accounts established
under this section necessary to administer this part.
(2) As soon as practicable after submitting copies of
the itemized budget, the department shall submit to the
chairperson and minority chairperson of the Appropriations
Committee of the Senate and the chairperson and minority
chairperson of the Appropriations Committee of the House of
Representatives analyses of and recommendations regarding the
itemized budget.
(3) The itemized budget required under paragraph (1)
shall be submitted in conjunction with the budget required to
be submitted under section 1202(b)(28) (relating to general
and specific powers).
(d) Appropriation.--
(1) Costs and expenses may be paid from the accounts
established under subsection (a) only upon appropriation by
the General Assembly.
(2) If the total costs or expenses incurred by the
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board, the department, the Pennsylvania State Police or the
Office of Attorney General exceed the amounts available in
the accounts established under subsection (a), the General
Assembly may appropriate additional amounts to the board, the
department, the Pennsylvania State Police or the Office of
Attorney General from the Skill Gaming Fund.
§ 6105. Transfers from Skill Gaming Fund.
(a) Transfer to Compulsive and Problem Gambling Treatment
Fund.--On June 30, 2026, and on the last day of each fiscal year
thereafter, the State Treasurer shall transfer from the Skill
Gaming Fund an amount equal to 0.002 multiplied by the total
gross terminal revenue of all terminal operator licensees to the
Compulsive and Problem Gambling Treatment Fund established in
section 1509 (relating to compulsive and problem gambling
program).
(b) Transfer to General Fund.--On June 30, 2026, and on the
last day of each fiscal year thereafter, the State Treasurer
shall transfer any balance remaining, less the sum transferred
under subsection (a), in the Skill Gaming Fund to the General
Fund.
CHAPTER 63
ETHICS
Sec.
6301. Board code of conduct.
6302. Additional board restrictions.
6303. Financial and employment interests.
6304. Additional restrictions.
§ 6301. Board code of conduct.
(a) Update required.--The board shall update the
comprehensive code of conduct established under section 1202.1
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(relating to code of conduct) prior to the consideration of a
license, permit or other authorization under this part in order
to avoid a perceived or actual conflict of interest and to
promote public confidence in the integrity and impartiality of
the board as related to skill gaming. At a minimum, the updated
code of conduct adopted under this section shall include
registration of licensed entity representatives under subsection
(b) and the restrictions under subsection (c) as they relate to
skill gaming.
(b) Registration.--
(1) A licensed entity representative shall register with
the board in a manner prescribed by the board. The
registration shall include the name, employer or firm,
business address and business telephone number of both the
licensed entity representative and any licensed entity,
applicant for licensure or other person being represented.
(2) A licensed entity representative shall update the
registration information on an ongoing basis and failure to
do so shall be punishable by the board.
(3) The board shall maintain a registration list that
contains the information required under paragraph (1). The
list shall be available on the board's publicly accessible
internet website.
(c) Restrictions.--In addition to the other prohibitions
contained in this part, a member of the board shall:
(1) Not accept a discount, gift, gratuity, compensation,
travel, lodging or other thing of value, directly or
indirectly, from an applicant, licensed entity, affiliate,
subsidiary or intermediary of an applicant or a licensed
entity, registrant or licensed entity representative.
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(2) Disclose and recuse the member's self from a hearing
or other proceeding in which the member's objectivity,
impartiality, integrity or independence of judgment may be
reasonably questioned due to the member's relationship or
association with a party connected to a hearing or proceeding
or a person appearing before the board.
(3) Refrain from financial or business dealings that
would tend to reflect adversely on the member's objectivity,
impartiality or independence of judgment.
(4) (i) Not solicit money for a charitable,
educational, religious, health, fraternal, civic or other
nonprofit entity from an applicant, licensed entity,
party, registrant or licensed entity representative or
from an affiliate, subsidiary, intermediary or holding
company of an applicant, licensed entity, party or
licensed entity representative.
(ii) Subject to the provisions of section 1201(h)
(4.1) (relating to Pennsylvania Gaming Control Board
established), a member may serve as an officer, employee
or member of the governing body of a nonprofit entity and
may attend, make personal contributions to and plan or
preside over the entity's fundraising events.
(iii) A member may permit their name to appear on
the letterhead used for fundraising events if the
letterhead contains only the member's name and position
with the nonprofit entity.
(5) (i) Not meet or engage in discussions with an
applicant, licensed entity, registrant, licensed entity
representative, person who provides goods, property or
services to a terminal operator licensee or another
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person under the jurisdiction of the board unless the
meeting or discussion occurs on the business premises of
the board and is recorded in a log.
(ii) The log shall be posted on the board's publicly
accessible internet website.
(iii) The log must include the date and time of the
meeting or discussion, the names of the participants and
the subjects discussed.
(iv) The provisions of this paragraph shall not
apply to a meeting that considers matters requiring the
physical inspection of the equipment or premises of an
applicant or a licensed entity, if the meeting is entered
in the log.
(6) Avoid impropriety and the appearance of impropriety
at all times and observe standards and conduct that promote
public confidence in the oversight of skill gaming.
(7) Comply with other laws, rules or regulations
relating to the conduct of a member.
§ 6302. Additional board restrictions.
(a) Board restrictions.--The following shall apply to a
board member or employee of the board whose duties substantially
involve licensing, enforcement, development of law, promulgation
of regulations or development of policy relating to gaming under
this part or who has other discretionary authority which may
affect or influence the outcome of an action, proceeding or
decision under this part:
(1) The individual may not, for a period of two years
following termination of employment, accept employment with
or be retained by an applicant or a licensed entity or by an
affiliate, intermediary, subsidiary or holding company of an
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applicant or a licensed entity.
(2) The individual may not, for a period of two years
following termination of employment, appear before the board
in a hearing or proceeding or participate in activity on
behalf of an applicant, licensee or licensed entity or on
behalf of an affiliate, intermediary, subsidiary or holding
company of an applicant, licensee or licensed entity.
(3) (i) An applicant or a licensed entity or an
affiliate, intermediary, subsidiary or holding company of
an applicant or a licensed entity may not, until the
expiration of two years following termination of
employment, employ or retain the individual.
(ii) Violation of this paragraph shall result in
termination of the individual's employment and subject
the violator to section 5905(c) (relating to prohibited
acts and penalties).
(4) (i) A prospective employee who, upon employment,
would be subject to this subsection must, as a condition
of employment, sign an affidavit that the prospective
employee will not violate paragraph (1) or (2).
(ii) If the prospective employee fails to sign the
affidavit, the board shall rescind an offer of employment
and may not employ the individual.
(b) Contractor restrictions.--The following shall apply to
an independent contractor of the board and to an employee of an
independent contractor whose duties substantially involve
consultation relating to licensing, enforcement, development of
law, promulgation of regulations or development of policy
relating to skill gaming under this part:
(1) The person may not, for a period of one year
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following termination of the contract with the board, be
retained by an applicant or a licensed entity or by an
affiliate, intermediary, subsidiary or holding company of an
applicant or a licensed entity.
(2) The person may not, for a period of two years
following termination of the contract with the board, appear
before the board in a hearing or proceeding or participate in
activity on behalf of an applicant, licensee or licensed
entity or on behalf of an affiliate, intermediary, subsidiary
or holding company of an applicant, licensee or licensed
entity.
(3) (i) An applicant or a licensed entity or an
affiliate, intermediary, subsidiary or holding company of
an applicant or a licensed entity may not, until one year
following termination of the contract with the board,
employ or retain the person.
(ii) A knowing violation of this paragraph shall
result in termination of the person's employment and
subject the violator to section 5905(c).
(4) (i) Each contract between the board and an
independent contractor that involves the duties specified
in this subsection shall contain a provision requiring
the independent contractor to sign an affidavit that the
independent contractor will not violate paragraph (1) or
(2).
(ii) If the independent contractor fails to sign the
affidavit, the board may not enter into the contract or
must terminate the contract.
(5) (i) An independent contractor shall require a
prospective employee whose employment would involve the
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duties specified in this subsection to sign an affidavit
that the prospective employee will not violate paragraph
(1) or (2).
(ii) If the prospective employee fails to sign the
affidavit, the independent contractor shall rescind an
offer of employment and may not employ the individual.
(c) Construction.--Nothing under subsection (a) or (b) shall
be construed to prevent a current or former employee of the
board, a current or former independent contractor or a current
or former employee of an independent contractor from appearing
before the board in a hearing or proceeding as a witness or
testifying as to any fact or information.
(d) State Ethics Commission.--
(1) The State Ethics Commission shall issue a written
determination of whether a person is subject to subsection
(a) or (b) upon the written request of the person or the
person's employer or potential employer. A person that relies
in good faith on a determination issued under this paragraph
shall not be subject to a penalty for an action taken,
provided that all material facts specified in the request for
the determination are correct.
(2) (i) The State Ethics Commission shall publish a
list of all employment positions within the board and
employment positions within independent contractors whose
duties would subject the individuals in those positions
to the provisions of subsections (a) and (b).
(ii) The board and each independent contractor shall
assist the State Ethics Commission in the development of
the list, which shall be compiled by the State Ethics
Commission and transmitted to the Legislative Reference
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Bureau for publication in the next available issue of the
Pennsylvania Bulletin biennially and posted by the board
on the board's publicly accessible Internet website.
(iii) Upon request, employees of the board and each
independent contractor shall provide the State Ethics
Commission with adequate information to accurately
develop and maintain the list.
(iv) The State Ethics Commission may impose a civil
penalty under 65 Pa.C.S. § 1109(f) (relating to
penalties) upon an individual who fails to cooperate with
the State Ethics Commission under this paragraph.
(v) An individual who relies in good faith on the
list published by the State Ethics Commission shall not
be subject to a penalty for a violation of subsection (a)
or (b).
§ 6303. Financial and employment interests.
(a) Financial interests.--Except as may be provided for the
judiciary by rule or order of the Pennsylvania Supreme Court, an
executive-level public employee, public official or party
officer, or an immediate family member thereof, may not
intentionally or knowingly hold a financial interest in an
applicant or a licensee, or in a holding company, affiliate,
intermediary or subsidiary thereof, while the individual is an
executive-level public employee, public official or party
officer and for one year following termination of the
individual's status as an executive-level public employee,
public official or party officer.
(b) Employment.--Except as may be provided by rule or order
of the Pennsylvania Supreme Court and except as provided in
section 1202.1 (relating to code of conduct), 4304 (relating to
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additional restrictions) or 6304 (relating to additional
restrictions), an executive-level public employee, public
official or party officer, or an immediate family member
thereof, may not be employed by an applicant or licensee, or by
a holding company, affiliate, intermediary or subsidiary
thereof, while the individual is an executive-level public
employee, public official or party officer and for one year
following termination of the individual's status as an
executive-level public employee, public official or party
officer.
(c) Complimentary services.--
(1) An executive-level public employee, public official
or party officer, or an immediate family member thereof, may
not solicit or accept a complimentary service from an
applicant or licensee, or from an affiliate, intermediary,
subsidiary or holding company thereof, which the executive-
level public employee, public official or party officer, or
an immediate family member thereof, knows or has reason to
know is other than a service or discount which is offered to
members of the general public in like circumstances.
(2) An applicant or licensee, or an affiliate,
intermediary, subsidiary or holding company thereof, may not
offer or deliver to an executive-level public employee,
public official or party officer, or an immediate family
member thereof, a complimentary service from the applicant or
licensee, or an affiliate, intermediary, subsidiary or
holding company thereof, that the applicant or licensee, or
an affiliate, intermediary, subsidiary or holding company
thereof, knows or has reason to know the service is other
than a service or discount that is offered to members of the
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general public in like circumstances.
(d) Grading.--An individual who violates this section
commits a misdemeanor of the third degree and shall, upon
conviction, be sentenced to pay a fine of not more than $1,000
or to imprisonment for not more than one year, or both.
(e) Divestiture.--
(1) An executive-level public employee, public official
or party officer, or an immediate family member thereof, who
holds a financial interest prohibited by this section shall
divest the financial interest within three months of the
effective date of this section, as applicable.
(2) An executive-level public employee, public official,
party officer or immediate family member shall have 30 days
from the date the individual knew or had reason to know of
the violation or 30 days from the publication on the board's
publicly accessible website under section 5301(b)(10)
(relating to powers of board) of the application or licensure
of the executive-level public employee, public official,
party officer or immediate family member, whichever occurs
earlier, to divest the financial interest.
(3) The State Ethics Commission may, for good cause,
extend the time period under this subsection.
(f) State Ethics Commission.--The State Ethics Commission
shall do all of the following:
(1) (i) Issue a written determination of whether a
person is subject to subsection (a), (b) or (c) upon the
written request of the person or another person that may
have liability for an action taken with respect to the
person.
(ii) A person that relies in good faith on a
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determination made under this paragraph shall not be
subject to penalty for an action taken, provided that all
material facts specified in the request for the
determination are correct.
(2) (i) Publish a list of all State, county, municipal
and other government positions that meet the definitions
of "public official" as defined under subsection (g) or
"executive-level public employee" as defined under
section 5102 (relating to definitions).
(ii) The Office of Administration shall assist the
State Ethics Commission in the development of the list,
which list shall be compiled by the State Ethics
Commission and transmitted to the Legislative Reference
Bureau for publication in the next available issue of the
Pennsylvania Bulletin biennially and posted by the board
on the board's publicly accessible Internet website.
(iii) Upon request, a public official shall provide
the State Ethics Commission with adequate information to
accurately develop and maintain the list.
(iv) The State Ethics Commission may impose a civil
penalty under 65 Pa.C.S. § 1109(f) (relating to
penalties) upon an individual, including a public
official or executive-level public employee, who fails to
cooperate with the State Ethics Commission under this
subsection.
(v) A person that relies in good faith on the list
compiled by the State Ethics Commission shall not be
subject to penalty for a violation of this section.
(g) Definitions.--As used in this section, the following
words and phrases shall have the meanings given to them in this
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subsection unless the context clearly indicates otherwise:
"Applicant." A person applying for a manufacturer license or
terminal operator license under this part.
"Financial interest." Owning or holding, or being deemed to
hold, debt or equity securities or other ownership interest or
profits interest. The term does not include a debt or equity
security, or other ownership interest or profits interest, which
is held or deemed to be held in any of the following:
(1) A blind trust over which the executive-level public
employee, public official, party officer or immediate family
member thereof may not exercise any managerial control or
receive income during the tenure of office and the period
under subsection (a). The provisions of this paragraph shall
apply only to blind trusts established prior to the effective
date of this section.
(2) Securities that are held in a pension plan, profit-
sharing plan, individual retirement account, tax-sheltered
annuity, a plan established under 26 U.S.C. § 457 (relating
to deferred compensation plans of State and local governments
and tax-exempt organizations) or a successor provision
deferred compensation plan whether qualified or not qualified
under 26 U.S.C. (relating to Internal Revenue Code) or any
successor provision or other retirement plan that:
(i) is not self-directed by the individual; and
(ii) is advised by an independent investment adviser
who has sole authority to make investment decisions with
respect to contributions made by the individual to these
plans.
(3) A tuition account plan organized and operated under
26 U.S.C. § 529 (relating to qualified tuition programs) that
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is not self-directed by the individual.
(4) A mutual fund where the interest owned by the mutual
fund in a licensed entity does not constitute a controlling
interest as defined in this part.
"Immediate family." A spouse, minor child or unemancipated
child.
"Licensee." A manufacturer licensee or a terminal operator
licensee.
"Party officer." The term shall include the following:
(1) a member of a national committee;
(2) a chairperson, vice chairperson, secretary,
treasurer or counsel of a State committee or member of the
executive committee of a State committee;
(3) a county chairperson, vice chairperson, counsel,
secretary or treasurer of a county committee in which a
licensee under this part is located; or
(4) a city chairperson, vice chairperson, counsel,
secretary or treasurer of a city committee of a city in which
a licensee under this part is located.
"Public official." The term shall include the following:
(1) The Governor, Lieutenant Governor, a member of the
Governor's Cabinet, State Treasurer, Auditor General and
Attorney General of the Commonwealth.
(2) A member of the Senate or House of Representatives
of the Commonwealth.
(3) An individual elected or appointed to an office of a
county or municipality that directly receives a distribution
of revenue under this part.
(4) An individual elected or appointed to a department,
agency, board, commission, authority or other governmental
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body not included in paragraph (1), (2) or (3) that directly
receives a distribution of revenue under this part.
(5) An individual elected or appointed to a department,
agency, board, commission, authority, county, municipality or
other governmental body not included in paragraph (1), (2) or
(3) with discretionary power that may influence or affect the
outcome of an action or decision and who is involved in the
development of regulation or policy relating to a licensed
entity or is involved in other matters under this part.
§ 6304. Additional restrictions.
(a) Restrictions.--
(1) No individual trooper or employee of the
Pennsylvania State Police or employee of the Office of
Attorney General or the department whose duties substantially
involve licensing or enforcement, the development of laws or
the development or adoption of regulations or policy related
to gaming under this part or who has other discretionary
authority that may affect or influence the outcome of an
action, proceeding or decision under this part may do any of
the following:
(i) Accept employment with or be retained by an
applicant or licensed entity, or an affiliate,
intermediary, subsidiary or holding company of an
applicant or licensed entity, for a period of two years
after the termination of employment.
(ii) (A) Appear before the board in a hearing or
proceeding or participate in other activity on behalf
of an applicant, licensee or licensed entity, or an
affiliate, intermediary, subsidiary or holding
company of an applicant, licensee or licensed entity,
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for a period of two years after termination of
employment.
(B) Nothing in this paragraph shall be construed
to prevent a current or former trooper or employee of
the Pennsylvania State Police, the Office of Attorney
General or the department from appearing before the
board in a proceeding or hearing as a witness or
testifying as to a fact or information.
(2) As a condition of employment, a potential employee
who would be subject to this subsection shall sign an
affidavit that the individual will not accept employment with
or be retained by an applicant or licensed entity, or an
affiliate, intermediary, subsidiary or holding company of an
applicant or licensed entity, for a period of two years after
the termination of employment.
(b) Employment or retention.--
(1) No applicant or licensed entity or an affiliate,
intermediary, subsidiary or holding company of an applicant
or licensed entity may employ or retain an individual subject
to subsection (a) until the expiration of the period required
in subsection (a)(1)(i).
(2) An applicant or licensed entity, or an affiliate,
intermediary, subsidiary or holding company of an applicant
or licensed entity that knowingly employs or retains an
individual in violation of this subsection, shall terminate
the employment of the individual and be subject to penalty
under section 1518(c) (relating to prohibited acts;
penalties).
(c) Violation.--If an individual subject to subsection (a)
refuses or otherwise fails to sign an affidavit, the
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individual's potential employer shall rescind the offer of
employment.
(d) Code of conduct.--
(1) The Pennsylvania State Police, Office of Attorney
General and department each shall adopt a comprehensive code
of conduct that supplements all other requirements under this
part and 65 Pa.C.S. Pt. II (relating to accountability), as
applicable, and shall provide guidelines applicable to
troopers, employees, independent contractors of the agency
whose duties substantially involve licensing or enforcement,
the development of laws or the development or adoption of
regulations or policy related to skill gaming under this part
or who have other discretionary authority that may affect the
outcome of an action, proceeding or decision under this part,
and the immediate families of these individuals to enable
them to avoid a perceived or actual conflict of interest and
to promote public confidence in the integrity and
impartiality of skill gaming enforcement and regulation.
(2) At a minimum, the code of conduct adopted under this
section shall apply the types of restrictions applicable to
members under section 1202.1(c) (relating to code of
conduct), except that the restrictions under section
1202.1(c)(5) shall not apply to an elected Attorney General.
(e) State Ethics Commission.--The State Ethics Commission
shall do all of the following:
(1) (i) Issue a written determination of whether an
individual is subject to subsection (a) upon the written
request of the individual or the individual's employer or
potential employer.
(ii) A person that relies in good faith on a
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determination made under this paragraph shall not be
subject to penalty for an action taken, provided that all
material facts specified in the request for the
determination are correct.
(2) (i) Publish a list of all positions within the
Pennsylvania State Police, the Office of Attorney General
and the department the duties of which would subject the
individuals in those positions to the provisions of
subsection (a).
(ii) Each agency subject to this subsection shall
assist the State Ethics Commission in the development of
the list, which list shall be compiled by the State
Ethics Commission and transmitted to the Legislative
Reference Bureau for publication in the next available
issue of the Pennsylvania Bulletin biennially and shall
be posted by the board on the board's publicly accessible
Internet website and shall be posted by each agency on
the agency's publicly accessible Internet website.
(iii) Upon request by the State Ethics Commission,
members and employees of each agency subject to this
subsection shall provide the State Ethics Commission with
adequate information to accurately develop and maintain
the list.
(iv) The State Ethics Commission may impose a civil
penalty under 65 Pa.C.S. § 1109(f) (relating to
penalties) upon an individual who fails to cooperate with
the State Ethics Commission under this subsection.
(v) A person who relies in good faith on the list
published by the State Ethics Commission shall not be
subject to penalty for a violation of subsection (a).
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CHAPTER 65
MISCELLANEOUS PROVISIONS
Sec.
6501. Funding.
6502. Declaration of exemption from Federal laws prohibiting
skill gaming terminals.
6503. Preemption of local taxes and license fees.
6504. Exclusive jurisdiction of Supreme Court.
§ 6501. Funding.
(a) Appropriation.--The General Assembly appropriates the
following:
(1) The sum of $5,000,000 is appropriated from the
General Fund to the board for the fiscal period July 1, 2025,
to June 30, 2026, to implement and administer the provisions
of this part.
(2) The sum of $3,000,000 is appropriated from the
General Fund to the department for the fiscal period July 1,
2025, to June 30, 2026, to prepare for, implement and
administer the provisions of this part.
(3) The sum of $2,000,000 is appropriated from the
General Fund to the Pennsylvania State Police for the fiscal
period July 1, 2025, to June 30, 2026, to prepare for,
implement and administer the provisions of this part.
(b) Repayment required.--The money appropriated under this
section shall be repaid to the General Fund by establishment
licensees according to subsection (c).
(c) Repayment schedule.--Beginning two years from the date
the board authorizes the first skill gaming terminal to be
connected to the central control computer system and is made
available for public use, the department shall collect an
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assessment of .05% of gross terminal revenue on a bimonthly
basis from each terminal operator licensee for deposit into the
General Fund. The department shall continue to collect the
assessment until the amounts under subsection (a) are repaid to
the General Fund.
(d) Unused amounts.--On July 1, 2026, any portion of amounts
appropriated under this section that are unexpended,
unencumbered or uncommitted as of June 30 of the prior fiscal
year shall automatically be transferred to the General Fund.
§ 6502. Declaration of exemption from Federal laws prohibiting
skill gaming terminals.
(a) Declaration.--Under 15 U.S.C. Ch. 24 (relating to
transportation of gambling devices), the Commonwealth declares
that it is exempt from 15 U.S.C. § 1172 (relating to
transportation of gambling devices as unlawful; exceptions;
authority of Federal Trade Commission).
(b) Legal shipments.--All shipments of gambling devices, as
defined in 15 U.S.C. § 1171 (relating to definitions), into this
Commonwealth, the registering, recording and labeling of which
has been effected by the manufacturer licensee of those devices
in accordance with 15 U.S.C. §§ 1173 (relating to registration
of manufacturers and dealers) and 1174 (relating to labeling and
marking of shipping packages), shall be deemed legal shipments
of gambling devices into this Commonwealth.
§ 6503. Preemption of local taxes and license fees.
(a) Statutes.--Skill gaming terminals shall be exempt from
taxes levied under the following:
(1) The act of August 5, 1932 (Sp.Sess., P.L.45, No.45),
referred to as the Sterling Act.
(2) The act of December 31, 1965 (P.L.1257, No.511),
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known as The Local Tax Enabling Act.
(3) 53 Pa.C.S. Pt. III Subpt. E (relating to home rule
and optional plan government).
(4) Any statute that confers taxing authority to a
political subdivision.
(b) Licensing fees.--Skill gaming terminals are exempt from
local licensing fees.
§ 6504. Exclusive jurisdiction of Supreme Court.
The Pennsylvania Supreme Court shall have exclusive
jurisdiction to hear a challenge to or to render a declaratory
judgment concerning the constitutionality of this part. The
Pennsylvania Supreme Court may take such action as it deems
appropriate, consistent with the Pennsylvania Supreme Court
retaining jurisdiction over the matter, to find facts or to
expedite a final judgment in connection with a challenge or
request for declaratory relief.
Section 33. Section 5513(a) introductory paragraph and (1)
and (e.1) of Title 18 are amended and subsection (f) is amended
by adding a definition to read:
§ 5513. Gambling devices, gambling, etc.
(a) Offense defined.--A person is guilty of a misdemeanor of
the first degree if [he] the person:
(1) intentionally or knowingly makes, assembles, sets
up, maintains, sells, lends, leases, gives away, or offers
for sale, loan, lease or gift, any [punch board, drawing
card, slot machine or any device to be used for gambling
purposes, except playing cards] illegal gambling device;
* * *
[(e.1) Construction.--Nothing in this section shall be
construed to prohibit any activity that is lawfully conducted
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under any of the following:
(1) The act of August 26, 1971 (P.L.351, No.91), known
as the State Lottery Law.
(2) The act of July 10, 1981 (P.L.214, No.67), known as
the Bingo Law.
(3) The act of December 19, 1988 (P.L.1262, No.156),
known as the Local Option Small Games of Chance Act.
(4) 4 Pa.C.S. (relating to amusements).]
(f) Definitions.--The following words and phrases when used
in this section shall have the meanings given to them in this
subsection unless the context clearly indicates otherwise:
* * *
"Illegal gambling device." A mechanical, computerized or
electrical contrivance, terminal, machine or other device that,
upon insertion or payment of cash or cash equivalent, is
available to play or operate one or more games, the outcome of
which game is determined by any element of chance. The term
includes a website, program, software or mobile device
application that offers the player the ability to play a game
with the outcome being determined by any element of chance. The
term shall not include any activity that is lawfully conducted
under any of the following:
(1) The act of August 26, 1971 (P.L.351, No.91), known
as the State Lottery Law.
(2) The act of July 10, 1981 (P.L.214, No.67), known as
the Bingo Law.
(3) The act of December 19, 1988 (P.L.1262, No.156),
known as the Local Option Small Games of Chance Act.
(4) 4 Pa.C.S. (relating to amusements).
* * *
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Section 34. Section 5803(a) of Title 42 is amended by adding
a paragraph to read:
§ 5803. Asset forfeiture.
(a) Applicability.--Notwithstanding any law to the contrary,
this section shall apply to forfeitures conducted under the
following:
* * *
(1.1) 4 Pa.C.S. § 5905 (relating to prohibited acts and
penalties).
* * *
Section 35. Repeals are as follows:
(1) The General Assembly declares that the repeal under
paragraph (2) is necessary to effectuate this act.
(2) Sections 2501 and 2502 and the phrase "the tax
imposed under section 2502 and" in section 2502.1 of the act
of March 4, 1971 (P.L.6, No.2), known as the Tax Reform Code
of 1971, are repealed.
Section 36. The following shall apply:
(1) The Attorney General or a district attorney may not
prosecute a violation under 4 Pa.C.S. Pt. IV:
(i) Committed less than 300 days after the effective
date of this section by a person that, at the time of the
violation, had an application pending before the Gaming
Control Board.
(ii) Committed less than 450 days after the
effective date of this section by a person that is a
lottery licensee.
(2) The Attorney General or a district attorney may not
prosecute a violation under the amendment of 18 Pa.C.S. §
5513(a)(1) or (e.1):
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(i) Committed less than 300 days from the effective
date of this section by a person that, at the time of the
violation, had an application pending before the Gaming
Control Board.
(ii) Committed less than 450 days after the
effective date of this section by a person that is a
lottery licensee.
Section 37. This act shall take effect July 1, 2025.
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